From Rania El Gamal and Vladimir Soldadkin
Saudi Arabian Energy Minister Khalid al-Falih said on Saturday that OPEC would meet the needs of the oil market but is not sure there is a shortage of data oil, especially from the United States, stocks are still showing.
Speaking at GJD before the ministerial panel, which met on Sunday by leading OPEC and non-Opec producers including Saudi Arabia and Russia, Falih told Reuters that OPEC would not decide on the outcome by the end of June when the group has to meet.
The Organization of Petroleum Exporting Countries (OPEC), Russia and other non-OPEC producers have agreed to reduce production by 1.2 million barrels per day from 1 January to six months – an agreement aimed at halting the creation and weakening of stocks. prices.
"We will be flexible, we will do the right thing we always do," Falih said of any decision at the June summit to continue the cuts.
Falih said OPEC is guided by two basic principles: "Keep the market in its direction towards balancing and return to normal, both to meet market needs, and we will be sure of the right balance."
The agreed OPEC share of the redundancies is 800,000 barrels per day, but its actual reduction is far greater due to production losses in Iran and Venezuela. Both are subject to US sanctions and are exempt from OPEC-led voluntary reductions.
US President Donald Trump called on OPEC and the actual leader of the Saudi Arabia group and asked them to cut oil prices. Riyadh, however, is not inclined to stimulate supply quickly and risks a price collapse.
Sunday's summit, known as the JMMC, appears against a backdrop of tight market concerns, as Iran's oil exports are likely to fall as early as May, and supplies from Venezuela may fall further in the coming weeks due to Washington's sanctions.
Oil pollution has also forced Russia to halt flows over the Druzhba pipeline – a key channel for crude oil in Eastern Europe and Germany – in April. The suspension, still unclear, left the refiners trying to find supplies.
"I'm not sure that there is a supply shortage, but we will look at the (market) analysis, and we will definitely be responsive and the market will be delivered," said Falich.
"All indications show that stocks are still growing, we saw US data week by week and they are huge increases, so obviously there is (there is) plenty of supply."
Oil stocks in the US rose unexpectedly last week to its highest levels since September 2017, while gasoline stocks dropped more than forecast, the Energy Information Agency (EIA) said on Wednesday.
OPEC's Technical Committee and beyond found that compliance by oil producers with the supply reduction agreement reached 168% in April, three sources reported on Saturday.
The Commission, known as JTC, met before the JMMC meeting to discuss oil markets.
(Report by Rania El Gamal and Vladimir Soldadkin, edited by Tom Hog)