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Saudi Arabia’s energy minister said OPEC+ will remain cautious on oil production, weeks after the group angered the US by lowering output.
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The 23-nation alliance, led by Riyadh and Russia, is set to meet on Dec. 4 to decide whether to cut production again, keep it stable or reverse course and pump more. Members are looking at the state of the global economy and seeing plenty of “uncertainties,” Prince Abdulaziz bin Salman said.
Oil has dipped sine June as central banks raise interest rates and China maintains its Covid Zero strategy. But Brent is still above $95 a barrel and up 23% this year, with many traders concerned about supply shortages once the European Union effectively bans the import of Russian crude from next month.
“Our theme is being cautious,” the minister said to Bloomberg TV at the COP27 climate summit in Sharm el-Sheikh, Egypt. “It’s about being responsible and not losing sight of what the market requires.”
He cited last month’s report from the International Monetary Fund that said the “worst is yet to come” for many economies.
“China is closing more cities and the jury is still out” on whether it will end its policy of strict coronavirus lockdowns, he said. “It’s about recession. I also see what central banks are saying and doing.”
