Saudi Arabia frustrated with oil and gas markets

Saudi Arabia is frustrated with the lack of commitment by members of the Organisation of the Petroleum Exporting Countries (OPEC) toward a pledge to lower oil production levels, New Khalij has reported. Energy Minister Khalid Al-Faleh intends to pressure non-committed countries such as Iraq, UAE, Ecuador and Algeria to follow through with the pledge in the coming months.

OPEC’s latest data shows that Iraq’s commitment to the pledge is non-compliant, with only a 30 per cent reduction in June, whilst Iraq’s own official data shows a higher commitment of 90 per cent.

“We have to admit that the market has turned to the downside amid a number of factors driving this sentiment,” explained Al-Faleh. “The commitment of some countries is still weak, which is a concern that must be addressed directly.”

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Oil prices have remained at $50 per barrel since OPEC’s last meeting in May, despite efforts to cut the output of oil production.

Amidst the turmoil of the Gulf-Qatar political rift, the Chief Executive of state-owned Qatar Petroleum, Saad Al-Kaabi, claimed that the country will increase production by 30 per cent from 77 million tonnes of gas to 100 million tonnes by 2024.