Saudi Energy Minister Prince Abdulaziz Bin Salman yesterday defended OPEC+’s oil production cuts stating that the aim of the cuts is to achieve stable and sustainable markets.
The minister made his remarks during a speech at the World Petroleum Congress held in Canada, as reported by the Saudi state-owned channel Al Arabiya.
Prince Abdulaziz said: “In the OPEC+ alliance, we aim to preempt any negative disruptions to the global energy market. We do not target prices, but rather aim to reduce volatility.”
The alliance believes that reducing production aims to create safe oil reserves and prevent any surpluses in supply, while maintaining inventories in case of market fluctuations that may lead to an increase in global demand.
OPEC and its allies, known as OPEC+, began limiting supplies in 2022 to bolster the market and bloc leaders Saudi Arabia and Russia have extended their combined 1.3 million barrel per day (bpd) cuts until the end of 2023.