Saudi oil minister sees ‘encouraging signs’ of demand recovery

OPEC+ is “on the right track” to re-balance the global oil market but still has “a long way to go,” Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday at the group’s Joint Ministerial Monitoring Committee.

Prince Abdulaziz’s comments are according to his introductory remarks made at Thursday’s JMMC meeting. The JMMC, which advises the wider OPEC+ group on policy and monitors oil markets, met on June 18 via video conference

“There have been encouraging signs of recovery in demand and a rebalancing of global oil markets,” said Prince Abdulaziz.

He warned, however, that there were risks.

“The world economy has embarked on the long journey of easing the lockdowns, but there will inevitably be setbacks and reversals. The possibility of a second wave of infections cannot be ruled out.”

OPEC+ is determined to comply with the “agreed cuts, fulfilling our commitment to the letter, with no exceptions,” Prince Abdulaziz said, in reference to a handful of countries, including Iraq, Nigeria, Angola, Gabon and Kazakhstan which pumped above their agreed limits in May.

“This time it is different.”

Prince Abdulaziz said the next two weeks will be “critical” for OPEC+ to demonstrate all countries are adhering to agreed production cuts. “We must show how serious we are in our collaboration, our unity and our commitment.”