Saudi Arabia's energy minister and Iraq’s prime minister discussed efforts to stabilize and rebalance global oil markets, according to state-run Saudi News Agency (SPA) on Wednesday.
Prince Abdulaziz bin Salman and Mustafa Al-Kadhimi held phone talks while the 21st Joint Ministerial Monitoring Committee (JMMC) was taking place.
The duo stressed the importance of compliance, by all participants, to the agreement between the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing nations, the group known as OPEC+, and the agreed-upon compensation mechanism to meet the target oil production, which was also echoed during the OPEC+ meeting.
Bilateral relations between the two countries and opportunities for further development were also on the agenda.
- OPEC+ calls for vigilance to support fragile oil market
OPEC+ called for vigilance by all participating countries underscoring the fragility of the market and significant uncertainties, particularly associated with oil demand.
The OPEC+ group met on Wednesday to review compliance with oil cuts to support oil prices during the coronavirus pandemic.
Pointing to signs of gradually improving market conditions and the lessening of the gap between global oil demand and supply, the group warned against a slower pace of recovery than expected with growing risks of a prolonged wave of COVID-19.
OPEC and its allies required oil nations that pumped over production targets to cut further in August-September amid concerns of a sluggish recovery in oil demand, saying full conformity was vital for the ongoing rebalancing efforts and to help deliver long-term oil market stability.
The OPEC+ group agreed on June 15 to lower its current crude oil production cut level to 7.7 million barrels per day (bpd) starting from August, from the existing 9.7 million bpd.
The JMMC, which closely watches how much crude oil each OPEC+ member produces, will hold its next meeting on Sept. 17.
By Sibel Morrow