OPEC+ a Key Guarantor of Oil Market Stability: Saudi Energy Minister
St. Petersburg, The Gulf Observer: Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, affirmed on Thursday that the OPEC+ alliance has become a critical guarantor of oil prices and the global oil sector, highlighting the group’s flexibility and effectiveness in adapting to evolving market dynamics.
Speaking at the St. Petersburg International Economic Forum, Prince Abdulaziz described OPEC+ as a “trustworthy and successful alliance” that plays a central role in stabilizing the oil market. “OPEC+ has proven itself as a reliable mechanism that responds effectively to global changes,” he said.
Responding to questions regarding the potential disruption of Iranian oil supplies following recent regional tensions, Prince Abdulaziz stated, “We will only react to realities,” signaling a cautious and data-driven approach from both Saudi Arabia and Russia.
He emphasized that Saudi Arabia and Russia continue to deepen their energy cooperation, including through joint ventures and investment facilitation, stressing the importance of cultivating an attractive climate for investors despite current geopolitical and economic challenges.
Iran, although a member of the Organization of the Petroleum Exporting Countries (OPEC), remains exempt from production cuts under the OPEC+ framework, which also includes Russia and several other key producers. Before Israel’s recent military action against Iran, the group had been moving toward increasing output targets for eight of its members.
These eight countries—Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Oman, Algeria, and Kazakhstan—are scheduled to convene on July 6 to review the market situation and determine whether to proceed with further production increases starting in August.
The OPEC Secretariat had announced at the end of May that these eight members agreed to raise oil production by 411,000 barrels per day in July 2025, citing stable global economic conditions and favorable market fundamentals. This decision followed earlier voluntary adjustments made in April and November 2023.
A virtual OPEC+ meeting held recently reaffirmed the bloc’s positive outlook for the oil market, with participating countries agreeing to align July’s production with anticipated demand trends, signaling cautious optimism about the resilience of global energy markets.
As the world navigates complex geopolitical developments, OPEC+ continues to play a pivotal role in maintaining balance and confidence in the oil sector.
