Saudi Energy Minister Says OPEC+ Decisions Not Politicized And Based On Market Fundamentals

Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, reportedly said on Monday that decisions by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are not politicized and are based on market fundamentals, adding that the alliance is sufficiently flexible to adjust policy as required.

Bin Salman was speaking at a media forum in Saudi Arabia’s capital Riyadh about last October's decision to trim the group's production target by 2 million barrels per day, reported Reuters.

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He had asserted in an interview with Energy Aspects last week the decision was locked in for the rest of the year, the Reuters report said.

Oil prices climbed over 1% on Monday led by optimism over Chinese demand, continued production curbs by major producers and Russia's plans to tighten supply. On Tuesday morning's Asia session, the commodity was trading lower.

Price Action: Brent crude futures were trading 0.8% lower at $83.39 a barrel while U.S. West Texas Intermediate crude (WTI) futures last rose 0.41% to $76.65.

The United States Brent Oil Fund (NYSE: BNO) closed 2.01% lower on Friday while the Vanguard Energy Index Fund ETF (NYSE: VDE) closed 3.67% lower.

OPEC has raised its 2023 global oil demand growth forecast due to China's relaxation of COVID-19 restrictions and reduced supply forecasts for Russia and other non-OPEC producers, according to its monthly report. Global oil demand will increase this year by 2.32 million barrels per day or 2.3%, the OPEC said on Tuesday in a monthly report.

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