Saudi Arabia will do what is needed to sustain oil market stability: Al-Falih

Saudi Energy Minister Khalid Al-Falih said on Monday that the Kingdom is closely monitoring developments in the oil market, which saw a high level of volatility in recent weeks.

Al-Falih says effectiveness of OPEC+ efforts has been well proven over the course of almost 30 months.

He added that the 24 oil-exporting countries in the group remain committed to the shared objective of balancing the oil market for the benefit of producers and consumers. “We have previously stated our commitment to do whatever it takes to stabilize markets and we have delivered on those promises. And I am making that commitment again.”

“And I would like to reiterate my confidence, based on my discussions with several key producers, and on our track record, that we will do what is needed to sustain market stability beyond June. To me, that means drawing down inventories from their currently elevated levels,” Al-Falih said.

The Saudi oil minister highlighted the collaboration between Saudi Arabia and Russia in their mutual efforts to stabilize global oil markets.

“But the Kingdom’s relationship with Russia extends beyond oil and OPEC+,” Al-Falih said.

“In fact, I would emphasize that some of the premier Russian companies are considering investments in the Kingdom, as well as Aramco and SABIC are considering investments in promising gas and petrochemical projects in Russia.”

Increasing US-China trade friction and potential barriers would certainly have a negative impact on the global economy and oil demand growth, according to the minister.