Saudi Arabia’s energy minister Khalid A. Al-Falih said Thursday that OPEC will no longer target crude prices.
Al-Falih told the New York Times he believes that OPEC managing oil prices “in the traditional way that we tried in the past may never come again.”
“Certainly we will not go with certain price targets, Al-Falih added.
The comments were made following the latest OPEC meeting that was held in Vienna on Thursday.
OPEC members once again declined to introduce production freeze measures after a proposed production deal in April failed to garner enough support.
OPEC said in a statement following the meeting that an 80 percent rise in crude prices over the last several months indicates that “the market is moving through the balancing process.”
However, OECD and non-OECD inventories are still standing well above the five-year average.
OPEC oil production rose by 140,000 barrels per day to 32.52 million bpd in April as Iran and Iraq each ramped up production by 150,000 bpd.
Saudi Arabia’s output fell by 20,000 bpd to 10.18 million bpd in April due to field maintenance.
That decline marked the first time this year that Saudi Arabia’s output has dropped.
According to S&P Global Platts, Saudi Arabia has about 2 million bpd in spare capacity that could allow it to boost output to offset shortfalls at some fields.
OPEC also noted the “very low investment level currently prevailing in the oil industry” and stressed the need to boost upstream investment “in order to achieve long-term balance in the oil markets.”
The group said that, given the current market conditions, OPEC’s secretariat should continue to closely monitor developments in the coming months and, if necessary, recommend another meeting and suggest further measures according to prevailing market conditions.
OPEC members also appointed Mohammed Sanusi Barkindo, from Nigeria, as Secretary General of the Organization.
The appointment is effective as of August 1 for a period of three years.
The group will meet again on November 30, 2016 in Vienna, Austria.