Saudi Arabia’s King Salman bin Abdulaziz Al Saud has stated that the Organization of the Petroleum Exporting Countries Plus (OPEC+) production pact is “essential” for oil market stability.
The King further stressed the need for producers to comply with the agreement. King Salman made this statement during the annual speech to the Saudi Arabia’s advisory Shura Council.
The Saudi King noted that the market stability and balance are pillars of the kingdom’s energy policy, and efforts by the world’s top oil producer to retain spare capacity have proven critical to ensuring energy supply security.
“The kingdom confirms its keenness for the continuation of the OPEC+ agreement due to its essential role in oil market stability and also stresses the importance of compliance by all participating countries with the agreement,” the King Salman further added.
The OPEC+ is a loosely affiliated entity consisting of 13 OPEC members and 10 of the world’s major non-OPEC oil-exporting nations. OPEC+ aims to regulate the supply of oil in order to set the price on the world market.
Earlier this month, the 23-member group agreed to increase output by 400,000 barrels per day in January despite demand concerns due to the rising number of coronavirus infections globally. The member countries will meet on January 4 to decide about future production cuts.
According to the International Energy Agency (IEA), the global oil demand is set to rise above pre-pandemic levels by the end of 2022. The agency noted that the global consumption will once again surpass 100 million barrels a day in the second half of 2022 as developed economies bring the virus under control.