The Opec+ group still has "tools" in its kit to maintain stability in the oil market, Saudi energy minister Prince Abdulaziz bin Salman said today at the opening of the Opec seminar in Vienna.
"The cohesion and the consensus process that we created will enable us to attend to situations in the coming months and we still have our tools in our kit," he said.
Opec+ has embarked on a series of crude supply cuts since late last year, including a surprise 1mn b/d unilateral cut from Saudi Arabia for July, recently extended into August, and a 500,000 b/d reduction in Russian exports next month.
"What we have done with the help of our colleagues from Russia was… to help mitigate the cynical side of the spectators on what is going on between Saudi Arabia and Russia," Prince Abdulaziz said. The voluntary cuts were based on market forecasts for the coming period, he added.
The Saudi minister made a virtue of the Opec+ group's flexibility to respond quickly, but said its decisions take time to be seen in the market.
"You cannot change negativity that is emanating from 'a tell-me type of thing not a show-me type of thing'. The latter comes a month or two later," he said.
Prince Abdulaziz bemoaned the market's lukewarm response to decisions taken at the most recent Opec+ meeting in June, saying "what we have delivered in that weekend was too big for people to comprehend". He emphasised the steps Opec+ has taken in terms of adopting more transparency to try to manage increased market volatility and said the group will do "what is necessary" to maintain market stability.
