CAIRO – Saudi Energy Minister Khaled al-Falih said on Monday that the Organization of the Petroleum Exporting Countries (OPEC) and its allies have agreed to reduce oil supply by 2019 to approximately 1 million barrels per day.
Al-Falih, who made his remarks at the Abu Dhabi International Petroleum Exhibition and Conference held in the United Arab Emirates pointed out that the technical analysis reviewed on Sunday showed the reduction was required to rebalance the market.
The Saudi ministry of energy said Sunday in a statement that al-Falih appreciated the cooperation of all producers to ensure the “stability of the markets” and that there were “sufficient supplies.”
For his part, Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE minister of energy and president of the OPEC Conference in 2018, said the member countries of OPEC, mainly the United Arab Emirates and Saudi Arabia, were prepared to meet the needs of the world crude market in case of a fall in supply for political reasons.
The OPEC previously pointed to rising oil prices, while the experts of the organization pointed to geopolitical tensions, in reference to sanctions imposed by the United States on Iranian crude since Nov. 5.
Washington adopted the strongest sanctions it has ever imposed on Iran after US President Donald Trump decided in May to withdraw his country from the 2015 nuclear agreement signed with Tehran, as these sanctions affect the sale of Iranian oil and companies around the world that buy Iranian oil.