OPEC’s decision to increase crude oil output by one million barrels per day “is an interim resolution,” Saudi Energy Minister Khaled Al-Faleh said on Sunday.
In remarks to Kuwait News Agency (KUNA), Minister Al-Faleh indicated that oil-producing countries have some margins with respect “of meeting the market demand” — affirming that they need not to adhere strictly to the output ceiling.
Minister Al-Faleh, whose country currently co-chairs the OPEC ministerial committee for monitoring the market, expressed his belief that the decision, taken during the organization 174th ministerial meeting and the fourth meeting grouping OPEC and non-OPEC producers, would meet global markets’ needs until the year-end.
He affirmed significance of OPEC’s forthcoming meeting in Algeria — during which the producers would re-examine the market conditions.
Explaining why the producers decided to lift the output, Al-Faleh said reports showed decline in crude reserves, following a glut. The reserves’ recession resulted in placing prices at acceptable levels and impacted positively on investments in the petroleum sector, particularly in the United States of America.
Saudi Arabia can secure the additional one million bpd solely, “however it won’t resort to such an option because it is an inseparable part of a gathering that functions with solidarity and partnership for stability of the global oil market,” he said.
He re-affirmed that the Kingdom remained keen on securing sufficient oil supplies to the markets.
Source: Kuwait News Agency