7/1, 10:25 PM (Source: TeleTrader)
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Al-Falih to present details of new OPEC+ charter tomorrow

Saudi Energy Minister Khalid al-Falih (pictured) said on Monday that the "tweaks" made during the today's meeting of the Organization of the Petroleum Exporting Countries (OPEC) were aimed at formalizing the cooperation with non-OPEC oil-producing countries. After the meeting, Al-Falih said that the talks produced an OPEC+ charter and that the negotiators made sure it "doesn't supersede" the existing OPEC charter. Secondly, the minister hinted that non-OPEC members of the accord would contribute monetarily to the OPEC Secretariat.

Al-Falih also said that Saudi Arabia currently has a minimum of 2.3 million barrels in spare capacity and that the kingdom would not push its crude burn oil on the market. He confirmed that his country will produce less oil than its OPEC quota and less compared to the previous year. He also added that he expects softer global oil demand in the near future.

Speaking on the United States oil production, Al-Falih said that US shale yields will "peak, plateau and decline" as any other oil field in history. "The question is when... [In the meantime] we will keep adjusting to it," adding that OPEC would trim its own production in order to reduce market volatility.

Breaking the News / MA