The joint ministerial meeting of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers held in Algiers came out with the decision to maintain current oil production levels until 2019, in a clear response to threats and pressures from US President Trump who had urged them to raise production and curtail prices.
“The current level of oil production will be maintained,” Saudi Energy Minister Khalid Aflah told reporters ahead of the opening ceremony of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC meeting.
“The challenge for the next year will be how to deal with a hike in the supply of crude that will be sourced from countries outside the reduction agreement.
Mr. Al-Faleh’s statement was a direct response to the US President, who had earlier called for increased oil production and reduced prices.
According to Mr. al-Faleh, there must be work early next year among the countries bound by the agreement to preclude damaging shocks on the oil market because of possible oversupply stemming from countries outside the relevant agreement.
According to the Saudi Energy Minister, the rate of commitment to the reduction agreement is still less than 100 percent due to the lack of quotas of some countries, but the latter are urged to work to ensure respect for the reduction agreement by a rate of 100 percent.
The Saudi Energy minister explained that demand in October is expected to be higher than in September, but the market will be balanced, with supply and demand close to each other, stressing that the current situation will continue to stabilize until the end of the year.
In this line, Prime Minister Mr. Ahmed Ouyahia said for his part that Algeria is committed to the right of countries producing raw materials to benefit from a fair price for this wealth in favor of its sustainable development.
Mr Ouyahia underlined during his speech after the President of the Republic Mr Abdelaziz Bouteflika was honored Sunday afternoon during the session by the OPEC members for his salient role in the stabilization of the world oil market, that the prices are still experiencing serious fluctuations accompanied by deleterious financial, economic and social effects which are very painful to the producing countries, stressing that Algeria hopes that the decisions produced by the Algiers meeting will contribute to ensuring a fair oil barrel price in the international market in a sustainable manner.
For his part, UAE Energy Minister Mr. Souhail Al Mazroui said that “Algeria has played a special role in ensuring the stability of the world oil market, with on focus the steady efforts made to this effect by President Abdelaziz Bouteflika, who has always fully supported the OPEC Organization”, as he put it.
The Emirati Minister further explained that the main objective of the OPEC Organization is not prices but is rather geared to ensuring a stable market and a balance of supply and demand.