Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said crude oil producers should not take the rise in prices for granted due to looming demand risks stemming from the COVID-19 pandemic. Prince Abdulaziz added that producers had to be careful as the crisis was not necessarily over. The statement came as consuming countries urged OPEC+ to release more supplies to avoid overheating the market. Brent crude oil prices have climbed around 70% since the start of the year to more than $85 per barrel.
The prince said the pandemic continues to dampen demand for jet fuel. He also expects a “huge uplift” in global oil inventories, in line with analysts’ projections of a 1 million-barrel surplus by March 2022, swinging from a deficit of about 1.5 million barrels today. Azerbaijan’s energy minister Parviz Shahbazov separately said that OPEC+ policy was appropriate, wise, and smart, given the global economy’s slow recovery from the pandemic.
Iraq, OPEC’s second-biggest producer on Wednesday, said that prices could reach $100 per barrel in the first half of 2022. However, OPEC+ is sticking to its cautious plan to raise output by 400,000 bpd each month. The group has also resisted calls for raising production further. OPEC+ producers will meet on November 4 to discuss their future production policy.
