On June 8, 2020, Prince Abdul Aziz bin SALMAN the Saudi Energy Minister said the Kingdom is determined to rebalance global oil markets in the wake of the successful meeting of members of the OPEC+ alliance.

“First and foremost, our purpose is to ensure the stability of the markets,” he told journalists at the virtual press conference of the OPEC and its allies led by Russia.

“There is no room for lack of conformity in the agreement. Producers who have failed to make the agreement will have to make up the cuts in July, August, and September. There is no stomach for laxity” bin SALMAN said.

Prince bin SALMAN said progress toward meeting the new output levels would be strictly monitored by monthly sessions of OPEC + energy ministers beginning in 10 days.

Not all OPEC members adhered to their quotas in May and June, as Iraq and Nigeria produced more than their quota allowances.

Another major reason for Monday’s price decline was the restart of crude production in Libya’s largest oil field, El-Sharara, with an initial capacity of 30.000 barrels bpd.

“I have no doubt Iraq will discharge its commitment to the letter. OPEC+ is about self-imposed and disciplined decision-making” SALMAN said.

Bin SALAMAN said he would like to instill some of the techniques of central bank management into the monthly meetings of the Joint Ministerial Monitoring Committee.

“Central bankers did a great job in the global financial crisis, and even now,” he said and called the former US Federal Reserve chairman Alan GREENSPAN as “my hero”.

Saudi Arabia will halt the 1 million bpd in extra voluntary cuts it announced in May. “The voluntary cuts served their purpose and we are moving on,” the prince said.

Alexander NOVAK the Russian Energy Minister said that global oil markets needed to find more balance. “Producers and consumers want recovery as fast as possible. The decision to extend the cuts was dictated by the need to see us through the most delicate period of recovery” he added.

“The success of our efforts rests on all countries doing their part,” he said. NOVAK agreed that full compliance was crucial to the OPEC+ deal.

Global oil markets shed some of the gains of recent weeks, trading at $40.88 per barrel, down nearly 3 percent, by the close of European trading, despite the weekend deal and the upbeat tone of the OPEC+ event.

Morgan Stanley, the American investment bank warned of the danger of prices rising too fast, causing US shale production to pick up again.

This article was edited using the data from the Aa.com.tr, Arabnews.com, English.aawsat.com, and Reuters.com.

Source of the photo: www. reuters.com