Saudi oil minister tells OPEC+ recovery 'far from complete'

New York — The following is an edited summary of remarks made on April 1 by Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, at the opening of the meeting of the OPEC+ producer group.

On current policy

"Last month, we called for a cautious and restrained approach, and -- unfortunately -- we have been proved right by subsequent developments. Those who said we were behind the curve and not being responsive to the needs of the market have now recognized that OPEC+ cautious position was the correct course of action. We should all act in humility and recognize the limitations of our predictive powers in the face of unprecedented conditions. In today's uncertain environment, charting a rigid path to recovery is unwise. The reality remains that the global picture is far from even, and the recovery is far from complete."

On fundamentals

"On the supply side, we have continued to play our part. Compliance with the levels we agreed has -- once again -- been impressive, with new aggregate levels set at 113%. But we have to approach the coming weeks with the same admirable commitment. And until the evidence of the recovery is undeniable, we should maintain this cautious stance.

"A few months back, we found ourselves in the eye of the storm. The sea conditions have improved and through our efforts we have steadied the ship. For the most part, the market is on a stable footing and stocks continue to draw down. In some parts of the world such as the US and the UK, the rollout of vaccines has been very effective. Stimulus measures are providing much needed support to revive the global economy. Even in those sectors that were badly hit such as airline travel, there are signs of meaningful improvement. But the waves are still tall and the sea remains rough. In the eurozone, infection rates continue to rise and countries are reimposing full or partial lockdowns and extending restriction to combat a third wave."

On future strategy

"Steering the ship in these current conditions where different scenarios are playing out in various regions of the world requires a steady hand on the tiller as I said back in February. It also requires flexibility and being responsive to market needs. Our agreement back in December 2020 provided us with a flexible mechanism to hold monthly meetings starting from January 2021 and to decide on whether to adjust output, be it increase, maintain, or decrease production depending on market conditions. Continuing with this flexible approach will serve us best."

On energy transition

"OPEC and the oil and gas industry must be part of the solution to climate change. They possess critical resources and expertise that can help meet the challenge of reducing global green house gas emissions. G20 leaders have already endorsed the strategy advanced by Saudi Arabia to deal with climate change -- the Circular Carbon Economy and its 4Rs -- reduce, reuse, recycle and remove -- as an inclusive and balanced solution for dealing with greenhouse gas emissions. It also embraced advanced technology as a crucial part of the global energy agenda.

"On such a vital subject as climate change, which impacts the lives and livelihoods of everybody on the planet and of generations to come, we must draw on this same spirit of unity that we have shown in dealing with the oil market over the past year. We look forward to working with this group in exploring possible work streams that would enhance our collaboration in this important area."