Saudi, Russia committed to global output deal

Saudi Energy Minister says OPEC member countries, OPEC+ are showing high level of commitment to current output deal to support prices.

RIYADH – Saudi Arabia and Russia expressed on Monday their full commitment to the global oil output deal under which OPEC and non-OPEC oil-producing countries have curbed output in order to support prices.

"It is my job to ensure that oversupply does not continue," said Saudi Energy Minister Prince Abdulaziz bin Salman said when asked about his expectations for 2020.

"OPEC member countries and allies, a grouping known as OPEC+, are showing a high level of commitment to the current deal," said Prince Abdul Aziz, calling for concentrating on stability of the oil market rather than prices.

"Fair price is stable price," added Prince Abdulaziz who replaced Khalid al-Falih as Saudi energy minister last month.

Russian Energy Minister Alexander Novak said there were no talks underway to change the global output deal.

"Moscow is fully committed to the deal," Novak told reporters while visiting Saudi Arabia for a Russian-Saudi investment event..

The deal between OPEC, Russia and other non-OPEC producers calls for reducing output by 1.2 million barrels per day until March 2020 amid forecasts of excess supply next year.

Prince Abdulaziz said that his country's oil output will recover to 9.86 million barrels per day in October and November, after it declined last month following attacks on its energy installations.

September oil production in Saudi Arabia, the world's largest oil exporter, fell by 660,000 barrels per day (bpd) from August to 9.13 million bpd in the wake of the attacks.

The September 14 attacks targeted two of state oil producer Saudi Aramco's plants, initially knocking out half of the kingdom's oil production or 5% of global output.

Speaking to reporters, Prince Abdulaziz said that Saudi Arabia will reach an oil production capacity of 12 million bpd by the end of November, while its current exports stand at around 6.9 million bpd and will remain at this level until the end of the year.