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His Excellency the Minister of Oil praises the efforts of (OPEC +)

06-01-2021

Praises the success of the thirteenth meeting of the OPEC + group, appreciating the pioneering role of the Kingdom of Saudi Arabia The thirteenth ministerial meeting of the OPEC + group was held in an atmosphere shrouded in optimism following the announcement of the vaccine for the Coronavirus and the start of the distribution of doses in various parts of the world. The positive effects of the spread of the vaccine on oil demand will be clearer in the second half of 2021, according to studies and expectations of OPEC. With the optimistic atmosphere, many concerns and anxieties were also indicated, based on the current state of uncertainty, which calls for the necessity of adopting more careful measures aimed at supporting the stability and balance of the markets. His Excellency the Minister of Oil and Minister of Electricity and Water Dr. Mohammad Abdullatif Alfares said in an intervention during the meeting and in a statement issued by the Ministry of Oil that “the new wave of the Corona virus reinforces concerns about the slow pace of the recovery of oil demand, especially in Europe and Asia, where refining activity in Asia and Europe is suffering from a slowdown. Demand It is expected that many oil refineries will conduct periodic maintenance in the coming period. As for oil supplies, there is an increase in production in some countries recently, which must be placed within the equation, and the oil reserve is still relatively high, which are all factors that call for caution in dealing with the oil market and not Urgent increase of production. " Amid intense consultations that preceded the meeting today, an agreement resulted in an agreement that strengthens the gains in the market and its stability, and in light of this atmosphere, it was agreed to continue the joint efforts of OPEC+ countries and to cooperate to ensure the stability of markets and achieve a balance of markets by continuing with the same current production levels, as the countries participating in the production cut agreement agreed to Not to increase production in February and March 2021 and to continue with the same production levels agreed upon for January 2021, considering a slight increase in Russia and Kazakhstan during February and March, which will enhance stability and balance in the oil market during the current stage, especially in light of the agreement that The Ministerial Conference is held on a monthly basis, which allows to quickly determine the levels of production needed by the recovery of global demand for oil. The Kingdom of Saudi Arabia presented a generous initiative of willingness to reduce voluntary production during the months of February and March, which helped support the atmosphere of optimism about the credibility of OPEC + towards focusing on improving market fundamentals and encouraging withdrawals from oil reserves with the aim of stabilizing markets. This decision contributes to supporting the markets and is in the interest of the gradual recovery of the economy, which encourages the atmosphere of investment and recovery in industrial activity and the return to normal life and is in line with optimism and hopes about the spread of the new vaccine and its impact on the recovery of the global economy, as OPEC data indicates an increase in the level of global economic growth at the level of 4.4% for 2021. The State of Kuwait played an active role in encouraging an atmosphere of optimism and understanding, reaching a historic agreement, and supporting the efforts of the Minister of Energy in the Kingdom of Saudi Arabia, Prince Abdulaziz bin Salman, who is keenly keen on the success of OPEC+ in reaching an agreement that achieves stability in the oil markets.