His Highness Prince Abdulaziz bin Salman, Minister of Energy of Saudi Arabia, said that it is not clear the real reason for the rise in oil prices over $70 a barrel, and whether it is due to “real supply and demand” factors or because of “excessively optimistic expectations and paths”.
Prince Abdulaziz said the OPEC+ group should remain vigilant because the oil market has not yet emerged from the “stagnation” caused by the coronavirus pandemic. At the same time, he warned traders not to confuse caution with inaction.
His Highness added: “We have to be careful, but caution does not mean that we do not have to do something.”
Although Prince Abdulaziz acknowledges the decline in global oil stocks and better expectations for demand during the second half of this year 2021 and until 2022, he added that OPEC+ cannot rule out any evil return to Covid issues, and appealed to caution against the possibility of reviving production from Iran and Venezuela, which are matters unconfirmed, but important and influential and the OPEC+ group should take it into account.