Saudi crown prince favors extending OPEC production limits
RIYADH –The Associated Press
Crown Prince Mohammed bin Salman said on Oct. 28 that the OPEC-led agreement is necessary to balance supply with demand.
The Organization of the Petroleum Exporting Countries is expected to take up the agreement at its next meeting on Nov. 30.
The effect of the production limits approved by major oil countries has been muted by rising output from U.S. shale-oil producers. The prince said that high demand for oil has absorbed the increased supply from shale oil.
“The journey toward restoring balance to markets, led by the Kingdom, is proving successful despite the challenges,” he said.
On Oct. 27, Brent Crude, the international benchmark oil, rose above $60 for the first time since 2015 as traders grew increasingly confident that OPEC will continue to limit pumping.
Jim Krane, an energy expert at Rice University in Houston, said Saudi Arabia needs to keep oil prices up to balance its budget and make the upcoming public sale of stock in Saudi Aramco, the state-owned oil company, attractive to investors.
Krane said OPEC cutbacks and higher prices would help boost U.S. production in Texas and North Dakota.
“We are returning to what we were before -- a country of moderate Islam that is open to all religions and to the world,” he said at an economic forum in Riyadh.
Prince Mohammed has pushed ahead with reforms since his appointment on June 21.