Saudi Arabia succeeded in boosting compliance with oil output cuts, Prince Abdul Aziz bin Salman, Minister of Energy, said during the 2021 Budget Forum.
The significant market improvement was driven by the Kingdom’s sound leadership through available options, Prince Abdul Aziz noted, affirming that Saudi Arabia does not target specific oil prices.
The Kingdom’s opinion was different from all states during OPEC meetings since the onset of coronavirus crisis, he said, adding that the oil bloc members did not reach an agreement over the necessary actions at that time.
The coronavirus crisis repercussions might continue over the next period, the minister further stated.
The Kingdom raised oil output by force at the onset of the crisis, Prince Abdul Aziz explained, affirming that everyone realized that Saudi Arabia will take its warnings seriously.
“In three days, we managed to get production reduction commitments from everyone at OPEC+,” the minister added, lauding the Kingdom’s leadership roles in managing the oil market.
Elsewhere, Prince Abdul Aziz praised the role of Crown Prince Mohammed bin Salman in this regard, revealing the “demand sustainability program”, which is under development by the energy ministry.
The program seeks to increase economic and environmental efficiency of oil and gas, and help provide non-conventional demand.
The Saudi minister also pointed to the “energy mix” program, under the leadership of the Crown Prince, which aims to use renewable energy and increase demand for gas.
“As the Kingdom is working on the energy mix program, we will not be surprised when Saudi Arabia begins exporting electricity to neighboring countries, such as Jordan, Egypt and Iraq,” Prince Abdul Aziz concluded.