Abu Dhabi: The attacks on oil facilities in Saudi Arabia would be a factor to be taken into account on any future supply cuts by Opec, according to the group’s Secretary-General Mohammad Barkindo.
Oil prices spiked 2 per cent following the attacks with Brent trading at $71 per barrel early on Wednesday. Barkindo also said the decision on whether to extend production cuts will be made in June after analysing the data. “It’s too early and the decision (on the extension of output cuts) will be made in June after looking into all the data.”
Opec member countries as well as non-Opec members will be meeting on June 25 and 26 in Vienna as part of the Opec conference.
Currently, Opec (Organisation of the Petroleum Exporting Countries) and its allies including Russia are currently cutting production by 1.2 million barrels per day to support oil prices. The deal, which came into effect on January 1, 2019 is valid till June.
Opec member countries will also meet during JMMC (Joint Ministerial Monitoring Committee) meeting in Jeddah on May 19 to take stock of the oil markets.
“This region has seen enough of turmoil - whatever happens here affects the rest of the world,” said Barkindo, while speaking to reporters at an event organised by Brooge Petroleum and Gas Investment Company in Abu Dhabi Tuesday night. “This is the most strategic region in the world and needs peace and stability.”
Two attacks took place on Saudi Arabia’s oil tankers as well as on pipeline pump stations in the last three days, causing oil prices to spike on supply concerns. In the first incident on Sunday, two oil tankers from Saudi Arabia were attacked off the coast of Fujairah. And in another incident on Tuesday, Saudi Aramco had to temporarily shutdown an oil pipeline following a drone attack on its facilities that transport oil from Eastern province to Yanbu port.