Opec+ members line up to endorse production cut after US coercion claim

Saudi defence minister says the decision by Opec+ to cut oil output was taken unanimously and for purely economic reasons



The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna. — AP file
The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna. — AP file

By Agencies

Published: Sun 16 Oct 2022, 10:00 PM

Opec+ member states lined up on Sunday to endorse a steep production cut agreed this month after the White House, stepping up a war of words with Riyadh, claimed Saudi Arabia had pushed some other nations into the move.

Saudi Arabia’s defence minister said the decision by Opec+ to cut oil output was taken unanimously and for purely economic reasons.

Prince Khalid bin Salman also said he was “astonished” by accusations that the Kingdom was “standing with Russia in its war with Ukraine”.

“It is telling that these false accusations did not come from the Ukrainian government,” he wrote on Twitter.

Iraq, Opec’s second largest exporter, said the decision was based on economic indicators and was taken unanimously.

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“There is complete consensus among Opec+ countries that the best approach in dealing with the oil market conditions during the current period of uncertainty and lack of clarity is a pre-emptive approach that supports market stability and provides the future the guidance it needs,” Iraq’s state oil marketer SOMO said in a statement.

Kuwait welcomes Opec+’s decision to cut oil production by two million barrels per day, state news agency (KUNA) said on Sunday, quoting Kuwait Petroleum Corporation’s CEO.

Sheikh Nawaf Al Sabah also reiterated Kuwait was keen on maintaining balance in oil markets for the benefit of both consumers and producers.

He said increasing economic concerns and expected slow global economic growth led to more disturbance of the balance between oil supply and demand.

Oman and Bahrain also said in separate statements that Opec+ — which includes other major producers, notably Russia — had been unanimous in deciding on the 2 million barrels per day reduction.

Algeria’s energy minister called the October 5 decision “historic” and he and Opec Secretary-General Haitham Al Ghais, currently visiting Algeria, expressed their full confidence in it, Algeria’s Ennahar TV reported.

The cut came despite oil markets being tight, with inventories in major economies at lower levels than when Opec has cut output in the past.

US National Security Council spokesman John Kirby said on Thursday that the cut would increase Russia’s revenues and blunt the effectiveness of sanctions imposed over the Ukraine crisis.

Oman’s energy ministry said Opec+ decisions were based purely on the realities of market supply and demand.


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