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2020-12-18 12:00:00

OPEC+ STABILITY

OPEC+ STABILITY

PLATTS - 17 Dec 2020 - Despite differing views on the pandemic, the OPEC+ alliance will continue to manage the oil market, Saudi energy minister Prince Abdulaziz bin Salman said Dec. 17.

"We are talking about stable markets, sustainable markets that support investment and development," he said at a forum to discuss Saudi Arabia's 2021 budget.

OPEC and its allies, led by Russia, have over the course of 2020 laid bare their opposing philosophies on how to deal with the coronavirus pandemic in a series of fractious meetings over production quotas.

Prince Abdulaziz said Saudi Arabia's preference is to remain proactive in cutting supply to stay ahead of any demand slumps, as the pandemic continues to rage in western countries.

However, other members, including Russia and the UAE, have been more eager to relax quotas to reclaim market share. At the coalition's last meeting Dec. 3, OPEC+ members agreed to raise collective output by about 500,000 b/d from January and to convene monthly to determine subsequent levels.

OPEC+ officials say that will enable the producers to stay nimble and react quickly to changing market conditions.

"We had a different point of view on the pandemic here in the kingdom," Prince Abdulaziz said. "At least in the energy sector, we believe in taking early measures to contain such matters. To take initiatives and to take early measures will have better results, rather than leaving matters until things become harder and the curing of such problems will be very costly."

The OPEC+ alliance will next meet Jan. 4.

Saudi Arabia, the world's largest crude exporter, saw its oil revenues plunge 30.7% in 2020 to Riyal 412 billion ($109.81 billion), its finance ministry said Dec. 15 in unveiling the budget, which slashed spending by about 7% from 2019 levels to try and reduce its deficit.

Market watchers view the budget as a marker the kingdom's oil price expectations, but officials declined to say what price target they are aiming for. Front-month ICE Brent futures were trading at $51.26/b at 1049 GMT.

"We don't target certain price levels," Prince Abdulaziz said. "We aim to stabilize the oil market [and] encourage investors to continue their investments through what they see are stable markets."

Analysts with Riyadh-based Al-Rajhi Capital said the Riyal 849 billion ($226 billion) revenue assumption in the budget appears "reasonable based on a Brent price of $48/b."

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Earlier:

OPEC+ STABILITY
2020, December, 17, 14:10:00
OIL PRICE: NOT BELOW $51
Brent rose 72 cents, or 1.4%, to $51.80 a barrel. WTI rose by 71 cents, or 1.5%, to $48.53 a barrel.
OPEC+ STABILITY
2020, December, 16, 12:45:00
OIL PRICE: NOT BELOW $50 AGAIN
Brent fell 15 cents, or 0.3%, to $50.61 a barrel. WTI fell 13 cents, or 0.3%, to $47.49 a barrel.
OPEC+ STABILITY
2020, December, 16, 12:35:00
ЦЕНА URALS: $47,0469
Средняя цена на нефть Urals за период мониторинга с 15 ноября по 14 декабря 2020 года составила $47,0469 за баррель, или $343,4 за тонну.
OPEC+ STABILITY
2020, December, 15, 14:20:00
GLOBAL OIL DEMAND DOWN 9.77 MBD
World oil demand for 2020 is expected to decline by 9.77 mb/d,
OPEC+ STABILITY
2020, December, 15, 14:10:00
U.S. PRODUCTION: OIL (-137) TBD, GAS (-744) MCFD
Crude oil production from the major US onshore regions is forecast to decrease 137,000 b/d month-over-month in December from 7,575 to 7,438 thousand barrels/day, gas production to decrease 744 million cubic feet/day from 81,521 to 80,777 million cubic feet/day .
OPEC+ STABILITY
2020, December, 9, 11:45:00
OIL PRICES 2021: $47 - $50
Brent prices will average $49/b in 2021, up from an expected average of $43/b in the fourth quarter of 2020. Brent prices will average $47/b in the first quarter of 2021 and rise to an average of $50/b by the fourth quarter.
OPEC+ STABILITY
2020, December, 9, 11:35:00
OPEC+ PRODUCTION CUTS 100.2%
OPEC+ compliance with its production cuts stayed stable at 100.2%.
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Tags: OPEC, RUSSIA, OIL, PRODUCTION