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After the US escalation against Saudi Arabia, 5 OPEC+ member countries support and endorse the decision to cut production

After the US escalation against Saudi Arabia, 5 OPEC+ member countries support and endorse the decision to cut production

By عبد السلام

Published: October 17, 2022

Several countries from the OPEC+ alliance expressed their support today, Sunday, for the production cut decision that was approved this month, after the United States said that Saudi Arabia had pushed some countries in the group to make this decision, escalating a war of words with Riyadh.

Washington had said on Thursday that the cut would boost Russia's revenues, and indicated that Riyadh planned this decision for political reasons. Saudi Arabia denied today, Sunday, any support for Moscow in its war on Ukraine.

Saudi King Salman bin Abdulaziz said on Sunday that the Kingdom is working hard to support stability and balance in oil markets, through matters including "establishing and continuing the OPEC+ agreement."

Saudi Defense Minister Prince Khalid bin Salman also said that the decision made on the fifth of this month to cut production by two million barrels per day, despite tight supply in oil markets, was unanimous and based on economic factors.

His statements were supported by ministers from many OPEC+ member countries including the UAE.

The UAE Energy Minister Suhail Al Mazrouei said on Twitter on Sunday that OPEC's latest decision to cut production by two million barrels per day was a purely technical decision made unanimously and was not a political decision as some try to describe it.

His statements came after the Iraqi state oil marketing company SOMO issued a statement.

SOMO said, "There is full consensus among OPEC+ countries that the best approach to dealing with the current oil market situation, which is characterized by uncertainty and lack of clarity, is a proactive approach that supports market stability and provides the future guidance needed."

The Kuwait News Agency (KUNA) reported that CEO of Kuwait Petroleum Corporation Sheikh Nawaf Saud Al-Sabah welcomed the OPEC+ decision, which includes other major producers led by Russia, and said his country is keen to maintain balance in oil markets.

Oman and Bahrain said, in separate statements, that OPEC made the production cut decision unanimously.

The Algerian Elnahar channel quoted Algerian Energy Minister Mohamed Arkab describing the decision made on October 5 as "historic." He and OPEC Secretary-General Haitham Al-Ghais, who is currently visiting Algeria, expressed their full confidence in the positive outcomes of the decision.

Al-Ghais said later at a press conference that the organization aims to achieve a balance between supply and demand, not a specific price.

Stocks in major economies are at lower levels than when OPEC cut production before.

However, analysts said recent volatility in crude oil markets can be addressed by a cut that would help attract investors to the market.

John Kirby, spokesperson for the U.S. National Security Council, said on Thursday that more than one country in OPEC felt that Saudi Arabia was forcing it to support the production cut decision, adding that the decision would increase Russia's revenues and undermine the effectiveness of sanctions imposed on Moscow because of its war in Ukraine.

King Salman said in a speech to the Saudi Shura Council that his country is a peace mediator, and highlighted Crown Prince Mohammed bin Salman's initiative to release war prisoners from Russia last month.

King Salman also called on Iran to fulfill its nuclear commitments and cooperate with the United Nations' International Atomic Energy Agency.

Khalid bin Salman said on Sunday, "We are surprised by the accusation that the Kingdom stands with Russia in its war against Ukraine."
 

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