Saudi energy minister Falih sees Venezuela crisis not yet affecting oil market: report

Saudi energy minister Khalid al-Falih said the crisis in Venezuela has yet to affect the oil market, Russian news agency RIA Novosti reported Monday.

“We hope for the best for the Venezuelan people. The effect on the market is so far zero,” Falih said, according to the report. “The oil market is very stable. No action is needed now.”
He added that there have been no discussions within OPEC over the recent developments in Venezuela.

Falih said he hopes OPEC/non-OPEC participants in the latest crude production cut agreement will demonstrate over 100% compliance.

“The cut that we discussed should be fulfilled, I hope, by more than 100%,” Falih said, according to the report. “Let’s see what happens in March or April — let’s wait.”

In December OPEC and non-OPEC participants in the deal agreed to cut production by 1.2 million b/d, with most countries using October 2018 production as a baseline. OPEC committed to cutting 800,000 b/d and non-OPEC 400,000 b/d. The deal came into effect at the start of this year.

Saudi Arabia and Russia’s leading roles in bringing OPEC and non-OPEC together has also led to greater bilateral cooperation, a trend that is set to continue in 2019.

Russian president Vladimir Putin is due to visit Saudi Arabia in 2019, which Falih said is likely to facilitate further cooperation.

“We look forward to President Putin visiting the Kingdom in 2019,” Falih said. “As we know King Salman made a successful state visit to Russia and this created many opportunities. The same will happen when President Putin comes here.”
Source: Platts