On Sunday, countries from the OPEC+ group voiced their support for the decision to cut production approved this month, after the United States said that Saudi Arabia had pressured some countries in the group to take this decision, in an escalation of a war of words with Riyadh, according to Reuters.
Washington said on Thursday that the reduction would boost Russia’s income, and indicated that Riyadh planned this decision for political reasons. On Sunday, Saudi Arabia categorically denied supporting Moscow in its war against Ukraine.
On Sunday, the Saudi monarch, King Salman bin Abdulaziz, said that the kingdom is working hard to support stability and balance in the oil markets, through, among other things, “the establishment and continuation of the OPEC + agreement.”
The Saudi monarch emphasized that the discovery of a number of gas fields in the Kingdom “supports the “leading position” of his country in the global energy sector.
He added in the royal annual speech outlining the state’s internal and external policies, addressed to the Saudi Shura Council, that “the Kingdom strives to ensure the combined immunity of the three pillars of the energy world, namely the security of the necessary energy supplies. , continuous economic development by providing reliable energy sources and facing climate change. “.
The Saudi Minister of Defense, Prince Khalid bin Salman, also said that the decision taken on the fifth of this month (October) to reduce production by two million barrels per day – despite the tight supply in the oil markets – was unanimous was and on economic factors.
His comments were supported by many OPEC+ member states.
UAE Energy Minister Suhail Al Mazrouei said in a post on Twitter on Sunday that OPEC’s recent decision to cut production by two million barrels per day was a “technical decision”.
I would like to emphasize that the recent OPEC decision to cut production was a purely technical decision and it was taken unanimously and not a political decision as some are trying to describe.
— Suhail Al Mazrouei (@HESuhail) October 16, 2022
“It was a purely technical decision and it was taken unanimously, and not a political decision, as some are trying to describe,” he stressed.
Al-Mazrouei’s comments came after the Iraqi state oil marketing company “SOMO” issued a statement.
Somo said: “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 of vision is a proactive approach that supports market stability and provides the future guidance what it needs.”
The Kuwait News Agency, “KUNA”, stated that the CEO of the Kuwait Petroleum Corporation, Sheikh Nawaf Saud Al-Sabah, welcomed the decision of OPEC +, which includes other major producers led by Russia, and said that his country is keen to maintain balance in the oil markets.
The Sultanate of Oman and Bahrain stated in separate statements that OPEC had taken the decision to cut production unanimously.
The Algerian channel An-Nahar quoted Algerian energy minister Mohamed Arkab as describing the decision taken on the fifth of October as “historic”. He and Haitham Al-Ghais, Secretary General of OPEC, who is currently visiting Algeria, expressed their full confidence in the positive results of the decision.
Al-Ghais later said in a press conference that the organization aims to achieve a balance between supply and demand and not a specific price.
The League of Arab States announced its “full solidarity” with Saudi Arabia on Friday, and League Secretary General Ahmed Aboul Gheit expressed “condemnation and rejection of what can be called the negative campaign of media statements against Saudi Arabia .Arabia in the wake of the OPEC Plus decision to partially cut oil production.” of the member countries of the group.
– League of Arab States (@arableague_gs) October 14, 2022
Aboul Gheit’s spokesman said: “These statements are far from the facts and are based only on the complete politicization of purely economic decisions that everyone knows are necessary for the stability of the global economy in light of the serious challenges it faces in face.”
The spokesman praised “the well-known and balanced Saudi approach to stabilizing the oil markets and the firm and principled positions of Saudi Arabia on domestic and international political issues.”
Reuters says that “stocks in major economies are at lower levels than when OPEC cut production in the past.”
However, analysts said that the recent volatility in the crude oil markets could be treated with a cut that would help attract investors to the market.
John Kirby, a spokesman for the US National Security Council, said on Thursday that more than one country in OPEC felt that Saudi Arabia was being forced to support the decision to cut production, adding that the decision would increase Russia’s income and will undermine the effectiveness. of sanctions imposed on Moscow because of its war in Ukraine.
In his address to the Saudi Shura Council, King Salman said that his country is a peace broker, and highlighted the initiative of Crown Prince Mohammed bin Salman to release prisoners of war from Russia last month.
King Salman also called on Iran to meet its nuclear obligations and cooperate with the United Nations’ International Atomic Energy Agency.
On Sunday, Khalid bin Salman said: “We are surprised that the Kingdom is being accused of siding with Russia in its war against Ukraine.”
“It is worth noting that these false accusations did not come from the government of Ukraine,” he added in a post on Twitter on Sunday.
We are surprised that the Kingdom is accused of siding with Russia’s war against Ukraine. It is worth noting that these false accusations did not come from the government of Ukraine. https://t.co/YIz441YinT
— Khalid bin Salman Khalid bin Salman (@kbsalsaud) October 16, 2022