Riyadh denies talks at Opec+ to increase production

Saudi Arabia denied reports in the Wall Street Journal that oil-producing countries are discussing raising production at their next meeting.

The world’s largest exporter of crude oil, the Saudi kingdom added that a production cut agreed in October by Opec+ should remain in force until the end of 2023.

On Monday, the U.S. Wall Street Journal reported that Saudi Arabia, which co-runs OPEC+ with Russia, and other members of the cartel were considering an “increase of up to 500,000 barrels per day.”

But Saudi Energy Minister Abdel Aziz bin Salmane “categorically denied” this information, according to the official Saudi news agency Spa.

“It is well known, and no secret, that OPEC+ does not discuss any decisions before its meetings,” Prince Abdel Aziz said.

The next meeting of OPEC+, the 13 members of the Organization of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia and their 10 partners led by Russia, is scheduled for December 4.

In early October, Opec+ decided to slash its production quotas in order to support falling crude prices.

This decision provoked the ire of the United States and cooled relations between the Saudi and American partners.

Saudi officials have vigorously defended the October production cut, saying it was driven solely by market conditions and could change as the market needs.

Prince Abdel Aziz reiterated this position on Monday. “The current OPEC+ cut of 2 million barrels per day remains in place until the end of 2023. And if there is a need to take action such as reducing production to balance supply and demand, we are always ready to step in.”

Oil prices fell Monday to their lowest since the beginning of the year, weighed down by the prospect of sluggish demand, especially after a Covid-19-related death in China, the world’s largest importer of crude, dashed hopes of easing curbs.