The world’s biggest crude producer will comply 100 percent with OPEC’s output cut announced last month in Vienna, according to an unnamed high ranking Saudi aide, reported Energy24.
A spokesman for the Saudi Arabian government added that Riyadh expects the cartel’s other members to do the same.
OPEC cut production by one million bpd in a bid to support crude prices that traditionally slump in the second quarter.
The source added that OPEC was not overly concerned with the recent downturn in prices, as it believed this was explained by ‘a psychological fear of a slump in the global economy’.
The source said that all OPEC members are committed to a $25 a barrel target price for the OPEC basket and that the recent decline in prices will encourage OPEC to comply stringently with its cuts.
But he refused to comment on today’s OPEC basket price that once again slid toward $22 and the lower end of the price band.
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