RIYADH: Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said on Sunday that the latest OPEC+ agreement involved comprehensive reform while the alliance was working against “uncertainities and sentiment” in the market.

“That is why we had this agreement,” the prince said at the Arab-China business conference in the Saudi capital Riyadh, when asked what was necessary to achieve market stability.

He said while the physical market was giving some signals, the futures market was saying the opposite, meaning the OPEC+ alliance of producers had to “remain in a state of readiness”.

GCC-China free trade deal must protect emerging Gulf industries: Saudi minister

Saudi Arabia, OPEC’s largest exporter, announced a voluntary cut of 1 million barrels per day (bpd) for July at an OPEC+ meeting in Vienna last weekend.

The group of producers also lowered its collective production target for 2024 and the nine participating countries extended voluntary cuts announced in April to the end of 2024.

The United Arab Emirates secured a higher output quota which it had long been seeking – an issue that had caused tension between the group and Abu Dhabi, which has been increasing its output capacity. The prince said the new OPEC+ deal would be rewarding for those who were investing to grow their production capacity.

“In the final analysis what this agreement will achieve for all of us is that those who invest, not this year, but the years to come, ’24 and ’25 and moving forward, there will be a recognition for their investment because they will be given higher production allocations.”

Concern about the global economy dampened the oil market’s reaction to Saudi Arabia’s pledge to cut supply. Oil prices fell by more than a dollar per barrel on Friday to record a second straight weekly decline.