Saudi Energy Minister Khalid al-Falih confirmed OPEC+ would maintain current production policies through April 2019, with potential adjustments in June, following a 2018 baseline reduction agreement. The Organization of the Petroleum Exporting Countries and its allies, known as the OPEC+ alliance, will hold meetings in Vienna on April 17-18 and June 25-26 to assess market conditions.
Falih stated the group would avoid immediate policy changes, saying, "We will see what happens by April... barring unforeseen disruptions, we will just be kicking the can forward." He emphasized the need for careful evaluation before making decisions, with a focus on global demand trends and supply dynamics.
The UAE reaffirmed its commitment to OPEC+ supply cuts, pledging to meet voluntary production adjustments until market stability returns. The agreement, initiated on January 1, 2019, involves a 1.2 million barrels per day reduction for six months, with Saudi Arabia maintaining output at 9.8 million barrels per day in April. This follows a 2018 baseline for cuts, with most members using October 2018 output levels as their reference.
Falih highlighted projected global oil demand growth of 1.5 million barrels per day in 2019, driven by China and India. However, he noted challenges from U.S. sanctions on Iran and Venezuela, which reduced Venezuelan exports by 40% to 920,000 barrels per day since January 28. U.S. production reached a record 12 million barrels per day in February, contrasting with Venezuela's decline.
Indian Oil Minister Dharmendra Pradhan urged Saudi Arabia to stabilize prices, proposing partnerships for strategic reserves and energy sector investments. The International Energy Agency maintained its 1.4 million barrels per day demand growth forecast for 2019.
