Page 7 - MEOG Week 08 2022

MEOG PRICES & PERFORMANCE MEOG

Saudi oil production up as

ministers back OPEC+ deal

SAUDI ARABIA DATA formally confirmed this week that Saudi impact. “Caution, a word that I know some
Arabia’s oil production increased by 110,000 bar- people hate me for, but ... I will continue being
rels per day (bpd) during December, in line with cautious, and [mindful of] the need to retain
its OPEC+ quota. flexibility in our strategy and adopt a long-term
Figures provided by Riyadh to the Joint perspective,” he said during a ministerial panel
Organizations Data Initiative (JODI) showed session at the IPTC conference in Riyadh on
that oil output averaged 10.018mn bpd, while February 20.
exports fell marginally to 6.937mn bpd. He was joined on the stage by his Bahraini,
The production figure is slightly higher Egyptian, Emirati, Iraqi and Kuwaiti counter-
than had been anticipated by previous surveys, parts. UAE Energy Minister Suhail al- Maz-
and paints a clear picture of the benefits of the rouei said: “I think our plan has been working
OPEC+ agreement which Gulf oil leaders have and I don’t believe that the market is hugely
this week rallied behind. under-supplied currently. It’s the other factors
In December 2020, Saudi oil production that are outside our hands which are impacting
sat at 8.98mn bpd and the uptick in output has the market.”
come alongside a massive increase in realised oil Meanwhile, Aramco President and CEO
prices. Amin Nasser this week continued to deride a
With crude now sitting comfortably in the lack of global investment in oil production, say-
$90-100 per barrel range, the US government ing it was “not adequate” to “sustain growth in
and the International Energy Agency (IEA) have demand in the mid- to short term”. He said he
been the most vocal voices calling for OPEC’s top anticipates global oil demand reaching pre-pan-
producers – Saudi, the UAE and Iraq – to utilise demic levels of around 100mn bpd during the
their spare capacity to bring greater balance and first half of the year.
stability to the market. “With the global recovery we’re seeing today,
However, Saudi continues to rebuff these there is more demand for products and we see
requests, with Energy Minister Prince Abdulaziz that from different enclaves, especially in Asia.
bin Salman Al Saud saying this week that rais- There’s some pick up in the rest of the world,” he
ing production would likely have the opposite added.™

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