OPEC and its non-OPEC partners need to reconsider if there is a need for a meeting in April, Saudi Arabia's Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said on Monday, adding that there was no pressure from the United States to increase supply. "We are not under pressure except by the market," Al-Falih told reporters ahead of a meeting of the Joint Ministerial Monitoring Committee (JMMC) here. "As long as the levels of inventories are rising and we are far from normal levels, we will stay the course guiding the market towards balance." The JMMC includes major oil producers Saudi Arabia and Russia and monitors the oil market and conformity levels with supply cuts. "There is a consensus that has also emerged that no matter what, we should stay the course until the end of June." Asked whether he was updated on whether the United States administration would extend the waivers it granted to buyers of Iranian crude, which are due to end in May, Falih said: "Until we see it hurting consumers, until we see the impact on inventory, we are not going to change course." The oil producers are due to meet next in April in Vienna, but Al-Falih said this may not happen. "The consensus we heard ... is that April will be premature to make any production decision for the second half," Falih said. "We may not have a meeting in April," he said, adding that the JMMC may recommend this later on Monday. OPEC is set to scrap its planned meeting in April and decide instead whether to extend oil output cuts in June, when the market will be able to assess the full impact of US sanctions on Iran and the crisis in Venezuela. Al-Falih said over the weekend that the market was looking oversupplied until the end of the year but that April would be too early for any decision on output policy. The United States has been increasing its own oil exports in recent months while imposing sanctions on OPEC members Venezuela and Iran in an effort to reduce those two countries' shipments to global markets. Washington's policies have introduced a new level of complication for OPEC as it struggles to predict global supply and demand. Many OPEC members have said Trump's sanctions policies have elevated the market. OPEC and its allies agreed in December to cut output by 1.2 million barrels per day — 1.2 percent of global demand — during the first half of this year in an effort to boost prices. Inventory levels and oil investments are the two main factors guiding OPEC's action, Al-Falih said, adding that oil industry estimates show that $11 trillion of investments will be needed over the coming two decades to meet demand growth. Oil inventories in developed countries continue to fluctuate, he said. "Our goal is to bring global inventory levels down to more normal levels — and even more importantly, to proactively protect against a glut," he said. "Another important metric is the state of oil investments ... we are not seeing an investment trend that will get us even closer to the required figures." — Reuters
