A report by the Organization of Petroleum Exporting Countries (OPEC) affirmed that the Joint Ministerial Monitoring Committee played a decisive role under the leadership of Saudi Arabia in the producers’ response to market developments, especially since the outbreak of the Corona pandemic crisis, referring to the vast experience of Prince Abdulaziz bin Salman, the Saudi Energy Minister, and his impressive capacity for leadership and dedication. Always at work.
The report pointed out that Prince Abdulaziz bin Salman, Minister of Energy, had an effective role in directing the negotiations for the adoption of many historic OPEC decisions, indicating his support for OPEC to help face the challenges and opportunities that were and are still facing member states.
He pointed out that Saudi Arabia has indeed made unique contributions to improving OPEC’s goals and objectives, as well as enriching dialogue between OPEC and other stakeholders in the international energy community, pointing to its influential role in bringing producers and consumers together, especially through the establishment of the International Energy Forum in Riyadh.
The report pointed to the role of Saudi Arabia in achieving better alignment with the work of the International Energy Forum, the International Energy Agency and “OPEC”, explaining that this cooperation has proven to be vital during dealing with the Corona pandemic crisis, especially in the framework of global efforts to restore the stability of the oil market. This has benefited producers and consumers and helps To provide a platform for global economic recovery.
He stated that Prince Abdulaziz bin Salman has a leadership role in the history of “OPEC” and he is a man who respects and understands the history of the organization, as he devoted himself to working for market stability in the interest of producers, consumers and the global economy, and he succeeded in managing the repercussions of the Corona crisis on the oil market, while the report quoted Muhammad. Barkindo, Secretary-General of OPEC, said, “It was a great honor to participate with Prince Abdulaziz bin Salman in many conferences and forums, and to learn from his wisdom and sincerity.”
He noted that the Saudi Minister of Energy dealt strongly with the Corona pandemic crisis and led the market in a critical and challenging period and at a critical juncture in the history of the global oil market, as the market looked to an influential role for member states in declaring cooperation “OPEC +” and making every effort to achieve sustainability. Balance and stability in the oil market.
The report pointed out that the public health measures taken to contain the fast-spreading virus led to severe restrictions on movement and wholesale economic shutdowns that were and still are severe. This disrupted economic activity and thus weakened the oil market. Therefore, OPEC +’s move was pivotal in responding to the unsustainable free fall in the region. The global oil market which has occurred very broadly in the second quarter of 2020.
He added that the countries participating in the “Declaration of Cooperation” took bold steps in April 2020 to collectively adjust production cuts for a two-year period starting at about ten million barrels per day, or about 10 percent of the world’s oil supply, which contributed to putting oil markets on a path of restoring Balance, stressing that these efforts brought stability and confidence to the oil market, increasing the oil sector’s contribution to the global economy and supporting economic recovery.
He mentioned that Prince Abdulaziz bin Salman, through his chairmanship of the ministerial committee to monitor production cuts in “OPEC +”, provided a steadfast hand in guiding discussions and assisting in formulating informed recommendations in ministerial meetings of “OPEC +” producers.
He pointed out his assurances that the Corona epidemic had an unprecedented spread and impact on the global economy and energy markets, but the producers, in turn, provided an unprecedented response and succeeded in providing periodic review and monitoring of market conditions through the joint ministerial and technical committees whose work was characterized by vitality and overall success.
He stated that the two committees provide an important platform for discussion, market analysis and sharing of data that support timely strategic decision-making, and that even before the outbreak of the pandemic crisis, the Saudi Minister of Energy played a central role in assisting and advancing the historic decisions of producers over the past few years and developing positive relations between OPEC. And producers outside of OPEC.
For his part, the international “Oil Price” report said that Russia hinted at extending “OPEC +” to the current production cuts, which is a positive development and eases fears of oversupply in the market, as Russian President Vladimir Putin said that Russia would be ready to postpone the easing of production cut restrictions planned in production cuts OPEC + to keep the production cuts of the “OPEC +” group at the current level of 7.7 million barrels per day.
He explained that, as of next January, the deal will be reduced to 5.7 million barrels per day, pointing out that the decision to postpone – if the producers agree to it at the next December meeting – is due to the fact that the demand does not return as quickly as hoped.
Russian President Putin was quoted as saying, “We believe that there is no need to change anything in our agreements and we will closely monitor how the market recovers. Nevertheless, we do not rule out the possibility of maintaining the current restrictions on production and not removing them as quickly as we planned to do previously.”
He stated that the increasing cases of Coronavirus around the world threatened the demand for oil and brought oil prices back to below $ 40, indicating that infections in the United States may break new records in the coming days, which is reflected in the weak demand for gasoline in the states The epidemic continues to curb any potential price hike, as crude oil remains stuck at $ 40, the level it has traded for four months.
The report pointed to weak demand in Europe, the United States and Latin America, as it remains depressed with the continuing spread of the Corona virus, but demand for gasoline is strong in Asia and even demand for jet fuel is recovering strongly, pointing out that there is a very big difference between East and West at the present time, as Asia is looking to soon reach levels of demand before the outbreak.
He pointed to the repercussions of the clash between US presidential candidates Donald Trump and John Biden over the oil and climate issues, as the issues of oil, fracturing and climate change played a major role in the recent presidential debate, noting that Trump largely ignored the issue of climate change and promised to maintain a friendly stance towards oil and gas.
He referred to Biden’s promises to provide job opportunities in renewable energy sources, justifying that the United States must move away from fossil fuels, quoting international analysts who predicted that the global economy is likely to move from a trade war to a carbon war quite smoothly in the next ten years.
The report confirmed an increase in corporate purchases of renewable energy sources over the next decade, as corporate purchases would represent 20 percent of total renewable energy installations, according to a new report issued by IHS Markit.
He pointed out that Japan will reach zero carbon emissions by 2050, which makes Japan compatible with the European Union and 60 other countries, explaining that Japan is a large consumer of coal, oil and liquefied natural gas and is the fifth largest emitter of carbon dioxide in the world, so the efforts The strict decarbonization will have global ramifications.
On the other hand, and with regard to prices at the end of last week, oil fell about 2 percent yesterday, the first, to end the week in decline, in light of an expected increase in Libya’s supplies of crude and concerns about demand resulting from the acceleration of Coronavirus infections in the United States and Europe.
Crude prices fell after the National Oil Corporation in Libya said it had lifted the status of force majeure on issues from two major ports, and that production could reach one million barrels per day within four weeks.
And American crude settled at 39.85 dollars a barrel, down 79 cents, equivalent to 1.9 percent, while Brent crude was settled at 41.77 dollars a barrel, down 69 cents, or 1.6 percent, and on a weekly basis, US crude lost 2.5 percent, and contracts lost Brent 2.7%.
Russian President Vladimir Putin said yesterday that Moscow does not rule out the extension of the oil production cuts implemented by “OPEC +”, but analysts said that this is not sufficient to offset the impact of expectations of increased Libyan production and demand concerns.
OPEC +, which includes Russia and the Organization of the Petroleum Exporting Countries, is set to raise production by two million barrels per day in January 2021. Baker Hughes Energy Services said that US energy companies added five oil rigs, bringing the total number of operating rigs to 287. In the week ending 23 October, the highest number since May, the number of rigs is an indication of future supplies.
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