Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar

[M115-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:01:30 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

It's a good question to start with, but in order to unwind for the 4th of June, I think I have to take you a little bit in a longer trip ahead of that June 4th meeting, which is more to do with trying to address the old challenging issues that the market keep challenging, us as a group, be it OPEC, for OPEC Plus. As a personal note, I've had been had this pleasure of being involved in OPEC affairs, actually it's 36 years and a month, so I know it inside-out. I have to say a few words, if you don't mind, our friends here do not mind, to put a few words on this one wonderful palace, with its Grand with History. It's an eight-centuries Palace. And I have to also share a few words of gratitude and thanks to the city of Vienna, the people of Vienna, the mayor, and the government of Austria for being a superb post, if I was saying for the last 58 years, cherishable days and nights, if you may find them one day in my book, if I ever have the time to write a book, but it's been a welcoming City, and the gracious people.

[M115-03] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:03:17 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

But going back to your question. I think we have been as an OPEC or OPEC Plus would continue to be, any person with sensibility would say that we would be continued to be challenged, and for that matter we need, we needed to head on reach out to these issues, attend to them, and go for what we think would be the right recipe to attend to this market situation, which is more and more transparency, and leaving no dot that has not been made, no line that has not been addressed, and no questions that has not been handled, or no, if I would call them, possibility of cracks that has not been random cracks, if I could call it. Then, it's not been heads on handled, where we can make it quite visible for people that there is no cracks.

[M115-04] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:04:30 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

So, going back to that story, I think we did ourselves as OPEC PLUS a great service in ensuring that we also seek the support of independent third parties. That's why we have done a great job in nominating few of those three third parties, independent institutions that do deliver us the monthly production and monthly supply. And how much is people are committed, we did ourselves favor and when we created the compensation scheme to ensure that people uphold their commitments, we did ourselves a favor. When we met on a monthly basis for mitigating the situation which had been bestowed on us, ever since COVID, and then we did ourselves a favor in creating an agreement that went on for two years.

[M115-05] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:05:37 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

And as you see the wisdom for that is quite apparent, and that's why we are making a repeat of it somewhat, albeit, shorter than two years. But again, the lesson learned in mitigating and attending to the COVID Crisis and what have you with more transparency, more clarity and more engagement with the market and market participant, whereby we can communicate, but we have to communicate without any distortions from our side, and without an incoming distortion from other side. There is always the chance that people would try to misread our statement, misread our intents. It's also our job to make sure that it is properly held and properly addressed.

[M115-06] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:06:36 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

And we also recognize that we had to go through, attending the challenging issues that the market rightly had been posing questions about, which is the difference between the ceiling and the rare production. That's another one of those phantom cracks that people try to penetrate to check these arrangements that we have. The phantom disputes, claim to be disputes about the fairness of the allocations of this target productions and the basis of it. And also the vacuum, when on the issue of how much people are allocated, and why they are not been allocated when they cannot produce it.

[M115-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:07:34 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

And between trying to be fair and equitable, and yet between, and wanting to address the market questions and to avoid the cynical part of the questioning anomaly, we had to, again like any human, responsible human or a responsible group, sit together and sort out all of these questions permanently. This way, we can, because this is the only way to create a proper platform in order for us to attend to the situation, prevailing situation as it is. That's why we had the 4th of June meeting. The ask was so big, I must say, each and every party for the purpose of arriving to that consensus had given up a bit here and a bit there.

[M115-08] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:08:31 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

I'm very grateful for the efforts that were made in the in 36 hours. We went out of that meeting, we had an agreement, we have added more transfer transparency anomaly, which is again engaging with third-party institutions, independent institutions, to verify production capacities, whereby we will then create better baselines for each and every country. And that process will be continuing with us, for as long as we have agreements, it is the reality check, that we had to undergo. And I believe that the testimony of that is what we have written together and agreed together.

[M115-09] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:09:23 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

People sometimes ask why then you had to do as Saudi Arabia the voluntary cut, and my answer is very simple, we had to do it, because there was another ask for the market. a more immediate ask, or a more immediate expectations of the market that the OPEC PLUS would need to do so. If we are to be fair for everybody, and if we wanted everybody to get along, we have to make sure that they maintain their focus on the more relevant more long-term issues. And to create an another ask, would be a distortion. That's why we've been elected to take that job on a temporary basis. This experience unlike what you hear in some outlets was not our first.

[M115-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:10:22 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

I would have to recall that in June 2020. We ourselves with our friends from UAE, Kuwait and Oman had made a voluntary contribution for a month. Ourselves willingly had underwent a voluntary cuts that started in February 2021, went on for three month. And then we gradually phased it out for until the month of July 2021. I would ask you, Paul, if I can turn the question: Where would we have been, if we have not done those things, then? It gave the market full of assurance that there is at attendance to this situation. It did not in any way put us back again to the old 80s, when we were named as the swinging producer, and what have you, because we all actually as OPEC PLUS do swing, but we swing both ways, not in a single way.

[M115-11] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:11:38 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

I believe honestly to.. to make the space and to allow people to focus on the real issue that will enable us to navigate into the future, it was I think honestly it has to be ourselves, since we brought all of these ideas together. So, the net effect of this whole thing, something to bring some help, to bring stability; temporaries or short-term stability to the situation. But more a more long-term solutions that address all of the questions which, in my judgment, will help to create a better environment, a more cohesive group, a more consecratory group, a more reason group for why people have a reason on that, for if I can be a bit of French here of staying and maintaining their commitment, Why? Because there is always a room for consensus, be it as big producer or be it a small producer.

[M115-12] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:12:54 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

In the last move this week, Yes we went on continuing with our voluntary cut. But again, part of what we have done, with the help of our colleagues from Russia was also to mitigate the cynical side of the spectators on what is going on between Saudi Arabia and Russia in that specific matter. I think it's quite telling to see us in Monday coming out with not only our own extension of the Million, but also with validation from the Russian side that they will do 500 from export. I miss, I forgot to mention that also, and this is something that we give great deal of recognition for the Secretariat, whereby myself as a chair, as a Saudi representative, representing Saudi Arabia, but as a chair and with the secretary we worked hard with the seven independent sources verifying Russia number.

[M115-13] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:11 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

And they have committed to this exercise and they are going to be doing it on a monthly basis, and for them to choose, and I would have to give it to them, that it was a voluntary cut that was not imposed in them. It was actually genuinely was delivered by them, including delivering that they will do it from their exports, because it is more meaningful for people to gauge whether this commitment was this job.

[M115-15] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:15:09 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

But what is challenging is this what you call it reviews. Just last week, you've seen and all of us, seen how much of a review was done in terms of demand, specifically for example, the US. There is an 800 hundred thousand Barrels. In April, it was not there. Today, it is here. There is always reviews, and that's why we have unfortunately, and I said unfortunately, discarded the IEA, because the IEA have their own set of numbers. But then, they come and revisit and revise, along with the other anomalies that comes out of the IEA which create a distortion to what the market should see. Today, I would have to quote, I think, Helena Croft is somewhere here around.

[M115-16] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:16:01 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

I would say that she refreshed something I have said to her but I'll give it to her. It's probably going to be the quote of the year: "This Market is about show me, not about tell me". That's her quotation, I would have to say that's true. that's why you know consistently ever since even October, we've been saying I will believe it, when I see it. now, if we don't see it, simply because even data is lagging that makes it even more difficult and more challenging.

[M115-18] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:17:16 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

I'll have to be fair, you know, as I said the what we have delivered in that weekend, or the 36 hours was too big for people to comprehend, although we did a detailed press conference. That's why, you know, it's good to have this opportunity today to go in a more meaningful, more detailed way, and that's why I'm grateful for your question. But again I felt that, and we still believe that we have addressed more of the above. I would have to, on behalf of our colleagues here, attendance from OPEC, or even some representation of our friends from OPEC PLUS, I don't think that in the last four years, or three years and a half that we have not done anything in the book, outside the book that says: we would not collaborate.

[M115-19] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:18:15 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

Well, actually we have proven that we have been up to the challenge, and I cannot think of any more challenging time than April 2020. And look at what we did, not only we did it with ourselves, or for ourselves, but actually we did it, with a lot of people. I still have to repeat that the G20, given the fact that we were hosting the G20 had contributed to about four and a half to five million of our cuts, including some measures that were taking on stocking done by India, China and others. So, you have to give it to us, in a way that when there are crises we attend, but also we attend both ways. let's not forget that OPEC has been a force of stability in the years passed over the last 58 years.

[M115-20] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:19:13 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

And also OPEC PLUS have continued that role. To take that out from us, I think I would have to ask some of those people to go back and take lectures in history of oil. Maybe, we're done and Jurgen, and your good self and just to make themselves acquainted with what is this OPEC and OPEC PLUS is all about.

[M115-22] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:19:49 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

Bob has a book, I think he's around, Bob has a good book.

[M115-24] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:20:44 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

Speculators are traders, which I by the way, I honestly believe, and I will say this and this one since time .. and this time and I'm not going to repeat it, even you know, in farmer's market you will have speculators. They are there to stay for all sorts of reasons, you will always have to speculate it in every market. So, I don't want to spend more time on that, more to.. to.. to go back to the original purpose of these tools; how they were created, where they were created. Specifically, they were created to hedge for people to de-risk their exposures; be it on foreign currencies and commodities, and what happened. It seems to me that this these tools have had an excessive use for it to tender, for the speculator room have always been inexistent, even before these tools were created for.

[M115-25] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:20:44 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

I would have to argue it is all about the input that they're getting. So, if you have an input of so-called data or news or what have, mostly in my judgment lately has been exaggerated on the negativity, because you go to the so-called abundant swings all over there. Sometimes all of a sudden, and we've seen it in the last six months, by the way, we've seen it in October. Look at how much verbal barrage came out after OPEC meeting, on October, when so many people whom I'm sure they have lost their credibility by now were almost swearing in TVs and Reporting and Quotations that this act of OPEC PLUS was a belligerent act, meant to increase prices, and blah, blah, blah, even by the way I repeat was made of that sort in April.

[M115-26] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:22:58 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

Look at what.. But again, this is, you know, there is a kind of a short memory type of thing. So, I'd have to say that given the situation today, if you correct then they are winning which is the.. the negative. Negativity is.. is taking its own part and take its own road, but with things that we do, with things that with others do, including Central Bankers, including data.. uh that hopefully would come very soon that people would go for the altar. And I've seen it, you've seen it, as a follower of markets where the Pandorum can swing actually over the last six months. And I would ask you, as an analyst, to check my statement,I could be wrong, I hope I'm wrong, but it's been going on for like two weeks, three weeks on and off, it's like a pity, you know you, you push the pitted and then you relieve the pitted. And it's all about good news and bad news; how they can interchangeably play them together. I don't know, but it seems to be working because it gives people some trading scope for them to fiddle and play or arrange. I'm sorry.

[M115-28] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:25:23 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

That's the most perplexing think. People for example again, I would use the U.S demand think, people are saying no demand .. no demand. Well, look at what April did. I wouldn't be surprised that if you see the.. again the updated numbers of May, or the updated. But it seems to be that they're coming, corrections are coming exposed facto. You cannot change a negativity that is emanating from as again remember saying it's a tell-me type of thing, not a show-me type of thing. Unfortunately, they show me the think comes a month or two later, but there is a great deal of a diverse type of negativism that is up taking everything as a hostility. I think clarity for what the central bankers will do will help. I think better and more numbers would come. That would show that inflation is somewhat. And it's by the way, again people overlook the fact that inflation is being managed.

[M115-29] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:26:42 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

Inflation did come down for quite the amount of percentages, ever since, so the tools in the kit with the central bankers, so as the tools in our kit whom we still claim ourselves being the central bankers are working and playing. We're doing a great deal of job, maintaining stability of this market, mind you of the range where people can fiddle with, so as the central bankers. So, it's I don't know, but I would.. I would assume one thing that's as central bankers are focused in attending to their mission, I have to say and I believe our friends here can validate that when their turn comes to.. to speak that I am very in my comfort zone that the cohesion that we have that the consensus process that we've created will enable us to attend to these situations now, next month, the month after. And we still have our, you know, tools in our kit. We still have the GMMC meetings that do hold meetings every two months, that GMMC meeting can call for extraordinary meeting.

[M115-30] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:28:09 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

We're not devoid of any tools. In fact, we have all the tools; the old and new. I believe, now, with the sorting out of what we have done in June. People are in much, in a very much more of their comfort zone. So, I'm very optimistic that actually OPEC PLUS with the changes that we have uh attempted to will become even more effective, but more, also more transparent.

[M115-32] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:28:58 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

To consider me, the most is ARAMCO.

[M115-34] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:29:13 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

You know, that's the key I think people should be in their comfort zone, but this market would not be left unattended for that's for sure. I'm in my comfort zone, that's why I'm enjoying my day. We will be enjoying the rest of the day. I don't get to be easily intimidated, so as my colleagues we're very much focused on the job, and the job only. I see some of these stories here and there, and there and I laugh because I know that it will be a matter of a week, or two that whatever storytelling that they had will be denied by facts, rather than having to deliberately put an effort to try to engage. I hope that they can listen to what we say as directly to them rather than hearing it second hand, third hand, fourth hand, where the message get to be diluted. But I'm in my Absolute Comfort Zone. I did say it: "I will mix it up between adding Greenspan and dragging". We will continue the effort of surprising markets, and we will, I will tweak what Draghi was saying, we will do whatever is necessary, no not whatever it takes, whatever is necessary.

[M115-36] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:31:05 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

That's the Conformity exercise.

[M115-37] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:31:43 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

I miss saying something you you were quoting Elton John song.

[M115-39] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:31:51 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

Can I with all due respect to Jonah can I add one piece?

[M115-41] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:31:55 · Special introductory session HRH Minister of Energy in OPENING of the 8th OPEC International Seminar · 2023-07-05 · مشاهدة عند هذا التوقيت

We are still standing, but we shall glow!