Saudi Arabia on Tuesday called on fellow OPEC+ producers to be flexible in responding to the oil market which was facing a new wave of COVID-19 outbreaks. OPEC+ is considering whether to move forward with a plan to boost production by 2 million bpd or 2% of the world’s demand in January. Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC+ producers do not want to give the markets any reason to react negatively.
Saudi Arabia has indicated it wants to reduce supply glut by a tighter policy in 2021. However, other major producers, such as Iraq, have been failing to deliver full compliance with the OPEC+ supply reduction deal. OPEC+ will hold a full ministerial meeting at the end of November to discuss future production policy. Earlier this year, the meeting resulted in a record oil production cut as measures to contain the pandemic ravaged oil demand.
Russian Deputy Prime Minister Alexander Novak said the OPEC+ deal succeeded to help stabilize the market and Russia would continue complying with its obligation under the joint effort. Novak, however, did not say whether Moscow supports the extension of the current output cuts. Some OPEC+ producers have expressed support to roll over the existing 7.7 million bpd cuts for a further three to six months.
