Oil markets are going through 'great fluctuations': Opec Secretary General

Oman, Bahrain also back move to cut two million barrels per day to stabilise oil market



Haitham Al Ghais said the goal of Opec and other major oil producers is to maintain market stability.
Haitham Al Ghais said the goal of Opec and other major oil producers is to maintain market stability.

By Reuters

Published: Sun 16 Oct 2022, 4:43 PM

Last updated: Sun 16 Oct 2022, 5:43 PM

Opec Secretary General Haitham Al Ghais said on Sunday that “oil markets are going through a stage of great fluctuations” during his two-day visit to Algiers.

Al Ghais added that the goal of Opec and producers outside the organisation is to maintain market stability.

For his part, Algeria’s Energy minister Mohamed Arkab said OPEC+’s latest decision to cut output was “historic” and aims to stabilize markets, Ennahar TV reported.

Separately, Oman’s Energy Ministry said in a tweet on Sunday that Opec+ decisions are based on purely economic considerations, realities of supply and demand in the market. “Opec+ output cut decision was important and necessary to reassure the market and support stability,” the ministry added.

Bahrain’s oil minister also said on Sunday that the Opec+ decision to cut oil output by two million barrels per day was taken unanimously and after a thorough technical study of the global market conditions and developments, state news agency (BNA) reported.

“Member states are keen to take decisions that aim to stabilise oil markets, and the group will study any economic developments to ensure the stability of global markets and supplies, and the balance between the interests of producers and consumers,” the minister added.

Earlier this month, the producer group comprising the Organisation of the Petroleum Exporting Countries (OPEC) plus allies including Russia, announced its new production target after weeks of lobbying by US officials against such a move. The decision, however, provoked accusations that the kingdom was taking sides in international conflicts and that it was politically motivated against the US.

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Saudi Arabia rejected these accusations saying they were “not based on facts,” and reaffirming that the Opec+ decision was adopted through consensus. The Gulf Cooperation Council (GCC) on Thursday also stood behind Saudi Arabia.

Earlier, the secretary general of the Organisation of Arab Petroleum Exporting Countries (OAPEC) said on Saturday that the Opec+ decision to cut its oil production target is correct and was taken at the right time.

The decision took into account the uncertainty surrounding the performance of the global economy and was in line with the successful approach taken by Opec+ in taking proactive steps to avoid any oil market imbalances, especially on the demand and supply sides, OAPEC secretary general Ali bin Sabt added in a statement.

“Such statements [criticising the Kingdom] will never distort facts and will never deter the kingdom from maintaining its balanced approach,” GCC Secretary-General Dr Nayef Falah Al Hajraf said in a statement.

OAPEC comprises Algeria, Bahrain, Egypt, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, Syria, Tunisia and the United Arab Emirates.


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