Saudi Arabia’s defense minister said his Opec+ decision to cut oil production was unanimous and was made for purely economic reasons. Prince Khalid bin Salman also said he was “surprised” by claims that the kingdom was “supporting Russia in its war with Ukraine ”.
“It is important that these false accusations were not made by the Ukrainian government,” he wrote on Twitter. States that the best approach to address oil market conditions in this time of uncertainty and lack of clarity is a preemptive approach that supports market stability and provides the guidance needed going forward. There is complete consensus among OPEC+ countries on this,” Iraqi state oil marketer SOMO said in a statement.
Kuwait has welcomed his Opec+ decision to cut oil production by 2 million barrels per day, state news agency KUNA quoted his CEO of Kuwait Petroleum Corporation on Sunday, I told you. Sheikh Nawaf Al Sabah also reiterated that Kuwait is interested in maintaining a balanced oil market for the benefit of both consumers and producers.
He said growing economic concerns and the expected slowdown in global economic growth would create major disruptions to the balance between oil demand and supply. Oman and Bahrain also said in separate statements that OPEC+, which includes other major producers, notably Russia, had unanimously decided to cut production by 2 million barrels per day.
Algeria’s energy minister called the October 5 decision “historic” and he and OPEC Director General Haitham Al-Ghais, who is currently visiting Algeria, expressed their full confidence in the decision, reported Algerian broadcaster Ennahar TV. The cut comes despite tighter oil markets and lower inventories in major countries than in past OPEC production cuts.
US National Security Council spokesman John Kirby said on Thursday that the cuts would increase Russia’s revenues and weaken the effectiveness of sanctions imposed over the Ukraine crisis. Oman’s Ministry of Energy said the Opec+ decision was based solely on the reality of supply and demand in the market.
