The Saudi Cabinet declares its solidarity with the OPEC+ allies and other oil producers to stabilize the oil markets
The Council of Ministers in the Kingdom of Saudi Arabia stated on Tuesday, April 21, 2020, that the Kingdom is monitoring oil markets and is ready to take additional measures to achieve stability in it alongside allies of OPEC + and other oil producers.
The cabinet statement came one day after US crude oil futures sank in a negative area, less than zero for the first time in history due to declining demand for oil in conditions of banning activities and staying at homes with the outbreak of the Corona virus globally.
The statement said: “The Kingdom is keen to achieve stability in the oil market, and is committed with Russia to implement production cuts during the next two years.” Where OPEC announced significant cuts in production, amounting to about 10% of global supplies, but demand for oil fell by 30%.
The OPEC Plus group had succeeded in reaching a historic agreement to re-balance the oil markets and stop the collapse in oil prices. The agreement was reached a few days ago in a (extraordinary) ministerial meeting of OPEC member states and oil-producing countries from outside the organization chaired by Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy as President, and Russian Energy Minister Alexander Novak as Co-Chair.
Argentina, Colombia, Ecuador, Egypt, Indonesia, Norway, Trinidad and Tobago and the International Energy Forum participated in the meeting as observers. During the meeting, the participating countries announced cooperation and reaffirmed their continued commitment to achieving stability in oil markets, maintaining them, and the common interests of producing countries, by providing safe, economic and highly efficient supplies to consumers and with fair returns to invested capital.