Saudi energy minister calls on OPEC+ flexibility as it weighs oil cut extension

DUBAI/LONDON: Saudi Arabia called on fellow OPEC+ members on Tuesday to be flexible in responding to oil market needs as it builds the case for a tighter oil production policy in 2021 to tackle weaker demand amid a new wave of the coronavirus pandemic.
OPEC+, which groups the Organization of the Petroleum Exporting Countries, Russia and others, is considering delaying a plan to boost output by 2 million barrels per day (bpd), or 2% of global demand, in January to support the market.
“We as a group do not want to give the markets any excuse to react negatively,” Saudi Energy Minister Prince Abdulaziz bin Salman said at the start of a virtual meeting of an OPEC+ panel, the Joint Ministerial Monitoring Committee (JMMC).
“The markets will not be kind to those who do not stick to agreements. This is why we must be prepared to act according to the requirements of the market. I recently said we must be ready to tweak the terms of our agreement if need be,” he said.
The JMMC can recommend policy steps to OPEC+, which agreed record oil cuts earlier this year.
An option gaining support among OPEC+ nations is to keep the existing output cuts of 7.7 million bpd for a further three to six months, OPEC+ sources said, rather than tapering the cut to 5.7 million bpd in January.
OPEC+ will have a full meeting on Nov. 30 and Dec. 1 to decide output policy for next year.
Oil slipped further below $44 a barrel on Tuesday, although it has found support from hopes for a COVID-19 vaccine and amid expectations in recent days of further action by OPEC+.