Saudi Cabinet backs OPEC+ agreement to stabilize oil markets

Riyadh, The Gulf Observer: Saudi ministers backed this week’s oil agreement between exporting countries and supported the Kingdom’s voluntary production cut.

Organization of the Petroleum Exporting Countries and allies such as Russia, known as OPEC+, announced on Sunday to limit oil output in 2024.

Saudi Arabia said it will extend its voluntary cut of 500,000 bpd until the end of December 2024, in coordination with some countries participating in the OPEC+ agreement.

The Saudi energy ministry also announced an additional voluntary oil output cut of 1 million bpd for July, which could be extended further.

This would mean that the Kingdom’s production becomes 9 million bpd, and its total voluntary cut will be 1.5 million bpd in July.

Defending the decisions made by the oil producers’ alliance, Saudi Energy Minister Prince Abdulaziz bin Salman stressed the need to “trust OPEC+” which he described as “the most effective international organization” working to restore market stability.

“It was just our sensibility, if you will call it, that the environment was not sufficiently allowing confidence to be there. So taking a precautionary measure tends to put you on the safe side. And it is part of the typical rhythm that we have installed in OPEC, which is being proactive, being preemptive,” Prince Abdulaziz said.

In other business, ministers at Cabinet meeting, chaired by Crown Prince Mohammed bin Salman in Jeddah, said the successful Saudi mission to the International Station shows the Kingdom’s strengthening role in space technologies.

The mission also comes as an extension of Saudi Arabia’s efforts to empower people, protect the planet, and shape new horizons through science, research and innovations, the Saudi Press Agency reported early Wednesday.

The officials reiterated the Kingdom’s commitment, during the BRICS meeting, to continue working with international partners to achieve the sustainable development goals by 2030, and to intensify global efforts to enhance food and energy security.

Locally, the Cabinet emphasized the government’s commitment to improve the level of services provided to citizens, including enhancing water resources and working on their sustainability through the launch of many high-quality and efficient projects. This includes the Jubail 3A Desalination Plant project, which was recently launched and is considered the largest of its kind in the world.

Ministers praised the comprehensive data provided by the Saudi census 2022, which will be a pillar for planning, development, decision-making and economic and social policy-making, in a way that contributes to achieving the goals of the Saudi Vision 2030 and preparing to create a better future.