After experiencing its third price collapse in 12 years, the oil and gas industry has quickly evolved. Fuel consumption in the region is regaining strength while the International Energy Agency is calling for the cartel to boost supplies. Yet, the Saudi Arabian energy minister said “we still are not out of the woods.”
Prince Abdulaziz bin Salman told the Robin Hood Investors Conference: “Many claim that I’m excessively cautious.. Well, it’s paying off.”
Crude oil is now trading at a two-year high above $70 a barrel, boosting the coffers of the Organisation of Petroleum Exporting Countries and its allies, of which Saudi Arabia is a leading member.
The OPEC+ alliance, which held almost 7 million b/d of production offline in April to speed the market’s rebalancing, reduced its output quotas last month, withholding as much as 5.8 million barrels a day of production from the market, in anticipation of rising summer oil demand and a healthier global economy. Prince Abdulaziz has previously said that he wants to see clear evidence of a strong demand recovery before restoring more of that idle capacity.
