Page 7 - MEOG Week 06 2023

MEOG POLICY & SECURITY MEOG

Prince Abdulaziz to maintain

caution on production

OPEC+ SAUDI Energy Minister and de-facto OPEC+ It added: “The Members of the JMMC reaf-
kingpin Prince Abdulziz bin Salman Al Saud firmed their commitment to the DoC which
said this week he would continue to be cautious extends to the end of 2023 as agreed in the
about increasing oil production. This comes 33rd OPEC and non-OPEC Ministerial Meet-
despite increased optimism among bankers and ing (ONOMM) on 5th of October 2022, and
analysts that growing demand could lead to a urged all participating countries to achieve full
rapid rise in the oil price with OPEC+ not devi- conformity and adhere to the compensation
ating from its recent restraint. mechanism.”
“I will believe it when I see it and then act,” The October deal saw OPEC reduce its allo-
Prince Abdulaziz said during a discussion with cated production level from 26.7mn bpd by a
energy historian and S&P Global vice chairman ‘voluntary adjustment’ of 1.27mn bpd to 25.4mn
Daniel Yergin. bpd, while its non-OPEC partners cut by just
Following the announcement that OPEC+ over 700,000 bpd. Saudi Arabia and Russia each
Targets (mbpd)
would continue to stick to the level agreed when made a voluntary cut of 526,000 bpd, though
Unchanged since October 2022
it reduced quotas by 2mn barrels per day (bpd) in reality Russian production had already been November 2022 Increase (mbpd)
in October, the minister said the group’s action hampered by a shrinking market for its crude
OPEC
had been vindicated despite high-profile, though following Western restrictions on purchases.
The theoretical withholding of crude pro-
brief, tensions with the US which continues to Algeria 1.055 1.007 -0.048
duction by OPEC+ has led banks such as Gold-
lobby for lower prices. Angola 1.525 1.455 -0.07
The October announcement led to a jump the man Sachs and Morgan Stanley to forecast Brent 0.325 0.31 -0.015
Congo (Brazzaville)
price of crude. “If people had trusted us at the prices in excess of $100 per barrel during Q3
Equatorial Guinea
time, we wouldn’t have gone through the fears owing to reduced inventories. 0.127 0.121 -0.006
Meanwhile, Prince Abdulaziz cautioned
that happened.” he said. Gabon 0.186 0.177 -0.009
OPEC’s Joint Ministerial Monitoring Com- Iran Exempt Exempt
against sanctioning energy producers, suggest-
mittee (JMMC) met on February 1, after which ing that these would come back to haunt con-
Iraq
it said: “The Committee reviewed the crude oil sumer nations that depend on major import 4.651 4.431 -0.22
Kuwait
production data for the months of November volumes. 2.811 2.676 -0.135
“All these sanctions, embargoes, they’re all
and December 2022 and noted the overall con- Libya Exempt Exempt
formity for participating OPEC and non-OPEC going to curl up into one thing and one thing
Nigeria
countries of the Declaration of Cooperation only: lack of energy supply of any kind when it’s 1.826 1.742 -0.084
(DoC).” Saudi Arabia 11.004 10.478 -0.526
most needed. That is my concern,” he said.™
UAE 3.179 3.019 -0.16
Venezuela Exempt Exempt
Targets (mbpd) Total 26.689 25.416 -1.273
Unchanged since October 2022 November 2022 Increase (mbpd)
OPEC Non-OPEC
Algeria 1.055 Azerbaijan 1.007 -0.048 0.717 0.684 -0.033
Angola 1.525 Bahrain 1.455 -0.07 0.205 0.196 -0.009
Congo (Brazzaville) 0.325 Brunei 0.31 -0.015 0.102 0.097 -0.005
Equatorial Guinea 0.127 Kazakhstan 0.121 -0.006 1.706 1.628 -0.078
Gabon 0.186 Malaysia 0.177 -0.009 0.594 0.567 -0.027
Iran Exempt Mexico Exempt 1.753 1.753 0
Iraq 4.651 Oman 4.431 -0.22 0.881 0.841 -0.04
Kuwait 2.811 Russia 2.676 -0.135 11.004 10.478 -0.526
Libya Exempt Sudan Exempt 0.075 0.072 -0.003
Nigeria 1.826 South Sudan -0.084 0.13 0.124 -0.006
1.742
Saudi Arabia 11.004 Total 10.478 -0.526 17.167 16.44 -0.727
UAE 3.179 OPEC+ 3.019 -0.16 43.856 41.856 -2.00
Venezuela Exempt Exempt
Total 26.689 25.416 -1.273

Non-OPEC
Azerbaijan 0.717 0.684 -0.033
0.196
Bahrain
0.205
Week 06 08•February•2023 www. NEWSBASE .com -0.009 P7
Brunei 0.102 0.097 -0.005
Kazakhstan 1.706 1.628 -0.078
Malaysia 0.594 0.567 -0.027
Mexico 1.753 1.753 0
Oman 0.881 0.841 -0.04
Russia 11.004 10.478 -0.526
Sudan 0.075 0.072 -0.003
South Sudan 0.13 0.124 -0.006
Total 17.167 16.44 -0.727
OPEC+ 43.856 41.856 -2.00