Riyadh — Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said Sunday that the current down cycle of crude prices is close to an end as market fundamentals improve.
“The current down cycle is nearing an end,” Falih told a joint press conference with his Russian counterpart Alexander Novak after a Gulf ministerial meeting in Riyadh.
“Market fundamentals, in terms of supply and demand, have begun to improve,” Falih said.
“We are optimistic that oil prices will continue to improve in the future,” he said.
Earlier, chairing the meeting of GCC oil and energy ministers here on Sunday, Falih said that OPEC and non-OPEC members have started intensive consultations to take suitable measures to restore a balance and expedite the recovery of the oil market.
He pointed to the success of the Algiers Energy Forum meeting in boosting cooperation between oil producing and exporting countries and consumers.
Qatar’s Energy Minister Mohammed Al-Sada, whose country holds the rotating presidency of the OPEC, also said the “difficult phase is over”.
OPEC has invited Russia and key non-members to a meeting later this month as they seek to tighten cooperation to boost historically low crude prices.
“Russia is one of the world’s biggest oil producers ... and is one of the influential parties in the stability of the oil market,” Falih said.
He said Novak had welcomed the invitation, “as a clear indication of sincere desire to continue cooperation and coordination with the oil producing and exporting countries for more stability in the market.”
Novak had said on Friday he would take “some” proposals to the meeting in Riyadh.
Last month in Algiers, the Organization of the Petroleum Exporting Countries agreed modest oil output cuts. The goal is to cut production to a range of 32.50-33.0 million barrels per day (bpd).
“The Algeria meeting last month was successful in pushing the path of cooperation between oil producing and consuming countries and included important talks between experts from OPEC countries and outside of OPEC about oil markets,” Falih said calling on his Gulf energy counterparts to work together as a bloc. — Agencies
