A statement by Saudi Energy Minister Prince Abdulaziz bin Salman on balancing oil markets was met with an outpouring of support from OPEC+ member states.
The UAE is aligned with Saudi Arabia’s thinking on crude oil markets, a source with knowledge of the matter told Reuters on Friday.
The minister on Monday raised the possibility of introducing production cuts to balance the oil market.
Sudan’s Energy and Petroleum Minister Mohamed Abdallah on Friday voiced support for his Saudi counterpart’s comments.
He said in a statement that his country supports OPEC+ efforts to maintain market stability in the face of distortions and volatility.
He also underlined the importance of the statement “that was made…by the Saudi energy minister on market instability and price volatility.”
Sudan, which is a member of OPEC+, also expressed its full support for the mechanism formulated within the framework of the OPEC+ alliance “which has provided the necessary tools, inducing the adjustment of oil production, to meet all the market challenges,” the statement added.
Iraq, Algeria, Libya, Kazakhstan, Azerbaijan, Venezuela, Congo and Equatorial Guinea all made similar statements ahead of the Sept. 5 OPEC+ meeting, which brings together members of the ‘Organization of Petroleum Exporting Countries and Other Producers, Including Russia.
Oil prices rose as high as $1 on Friday on signs of improving fuel demand, although an upcoming speech from the chairman of the US Federal Reserve limited further gains.
Brent crude futures climbed $1.53, or 1.54%, to hit $100.87 a barrel at 10:51 GMT. U.S. West Texas Intermediate (WTI) crude futures rose $1.20, or 1.3%, to $93.72.
Both contracts fell around $2 on Thursday but are on track for a weekly gain of around 4% for Brent and 3% for WTI.
Better than expected figures for the US economy helped to dissipate fears of recession.
The U.S. economy contracted at a more subdued pace than initially thought in the second quarter as consumer spending cushioned some of the slowdown from a sharp slowdown in inventory accumulation.
Further price support came from the Kingdom on Monday, signaling the possibility of production cuts to balance the oil market and offset the return of Iranian barrels to oil markets if Tehran strikes a nuclear deal with the West.
“Speculators may view this as an invitation to bet on further price increases without having to fear deeper price declines,” Commerzbank said in a note.