Saudi Energy Minister Abdulaziz bin Salman Al Saud said that oil prices could fall to 50 USD per barrel if OPEC+ countries do not are sticking to agreed production limits, newspaper The Wall Street Journal (WSJ) reported, citing its sources.
The information was announced before the meeting of the ministerial monitoring committee of OPEC+. According to the publication, its participants intend to discuss the issue of “relaxing production restrictions in December”.
Riyadh has warned several countries, including Iraq, not to increase oil production, saying they must “meet their obligations to OPEC+”. The Saudi ministry did not respond to a request for comment, the WSJ noted.
At the joint meeting of OPEC+ ministers held in June, the alliance's countries extended the deal itself until the end of 2025, as well as any voluntary cuts implemented by a number of countries. In addition, from October, the alliance was supposed to begin gradually returning 2.2 million barrels per day of reduced production to the oil market by December 2025. But OPEC+ allowed a review of this decision depending on market conditions. And already at the beginning of September, the alliance decided to postpone the restoration of oil production by two months - until December. The Deputy Prime Minister of the Russian Federation, Alexander Novak, explained that the decision to postpone the increase in production was made after analyzing the state of the market. According to him, the current situation does not allow this to be done.
The price of Brent crude futures for December delivery on London's ICE exchange rose above $75 on Tuesday for the first time since September 25 after a morning drop, trading data showed. Oil prices rise on news from the Middle East. About 400 rockets have been fired at Israel from Iran, The Jerusalem Post reported.