The non-compliance of OPEC+ states with the oil cuts is damaging the energy market stabilization, the participants of the oil curtailment agreement should not abuse the compensation scheme mechanism and offset all shortcomings by year's end, Saudi Energy Minister Prince Abdul Aziz Bin Salman said Thursday
MOSCOW (Pakistan Point News / Sputnik - 17th September, 2020) The non-compliance of OPEC+ states with the oil cuts is damaging the energy market stabilization, the participants of the oil curtailment agreement should not abuse the compensation scheme mechanism and offset all shortcomings by year's end, Saudi Energy Minister Prince Abdul Aziz Bin Salman said Thursday.
"Any action or statement that cast doubt about our commitment send the wrong [message] and undermine stability of the market. I have to emphasize that clearly using tactics to overproduce and hide non-compliance have been tried many times in the past and always end in failure. They achieve nothing and bring harm to reputation and credibility. They are damaging not only for those who carry them but for us all when the market is highly sensitive," Salman said at an opening of the OPEC+ ministerial meeting.
The non-compliance weakens the collective goal of the OPEC+ group, while attempting to "outsmart" the energy market will ultimately fail, the minister underlined.
"Not fully complying and then compensating should not become a norm we should strive to put the compensation scheme behind us as I have said last time. And implement the compensation scheme hopefully by end of year," Salman noted.
