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Opec+ decision on output cut to help stabilise markets: Oman

(Image for illustration only)
(Image for illustration only)

@JmObserver -

The Sultanate of Oman, represented by the Ministry of Energy and Minerals (MEM), supports the decision of Opec+ to cut oil production as agreed this month. The statement was made on the official Twitter account of MEM which says, “The decisions of Opec+ are based on purely economic considerations and on the realities of supply and demand in the market and respond to them proactively, in a practical and objective manner.”

The tweet added, “The recent decision of Opec+ to cut production is in line with its previous decisions in terms of being based on market data and its variables, which was important and necessary to reassure the market and support its stability and that the working mechanisms of the Opec+ group require that its decisions be taken by consensus and unanimity of all member states.”

Meanwhile, Saudi Arabia’s King Salman bin Abdulaziz said the kingdom was working hard to support stability and balance in oil markets, including by establishing and maintaining the agreement of the Opec+ alliance. The kingdom's defence minister and King Salman's son, Prince Khalid bin Salman, also said the October 5 decision to reduce output by 2 million barrels per day — taken despite oil markets being tight — was unanimous and based on economic factors.

His comments were backed by ministers of several Opec+ member states including the United Arab Emirates. The UAE’s energy minister Suhail al Mazrouei wrote on Twitter: "I would like to clarify that the latest Opec+ decision, which was unanimously approved, was a pure technical decision, with NO political intentions whatsoever."

His comment followed a statement from Iraq's state oil marketer SOMO. "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 guidance needed for the future," SOMO said in a statement.

Kuwait Petroleum Corporation Chief Executive Officer Nawaf Saud al Sabah also welcomed the decision by Opec+ — which includes other major producers, notably Russia — and said the country was keen to maintain a balanced oil markets, state news agency KUNA reported.

Bahrain’s oil minister said on Sunday that the Opec+ decision 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.

Algeria's energy minister called the decision ‘historic’ and he and Opec Secretary General Haitham al Ghais, visiting Algeria, expressed their full confidence in it, Algeria's Ennahar TV reported. Ghais later told a news conference that the organisation targeted a balance between supply and demand rather than a specific price. (With inputs from Reuters)

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