OPEC+ members line up to support production cuts after US coercion calls

CAIRO (Reuters) – OPEC+ members lined up on Sunday to support the sharp production cut agreed this month after the White House, in escalating a war of words with Saudi Arabia, accused Riyadh of forcing some other countries to support the move.

The United States indicated on Thursday that the cut would boost Russia’s profits from abroad, and suggested it was orchestrated by Saudi Arabia for political reasons, which on Sunday denied it was backing Moscow in its invasion of Ukraine.

The Saudi monarch, King Salman bin Abdulaziz, said that the Kingdom is working hard to support stability and balance in the oil markets, including by establishing and maintaining the OPEC + alliance agreement.

The kingdom’s defense minister and Prince Khalid bin Salman, King Salman’s son, said the October 5 decision to cut production by 2 million barrels per day – which was taken despite tight oil markets – was unanimous and based on economic factors.

His comments were endorsed by ministers from several OPEC+ member countries, including the United Arab Emirates.

“I would like to make clear that the latest OPEC+ decision, which was approved unanimously, was a purely technical decision, with absolutely no political intentions,” the Gulf state’s Energy Minister Suhail Al Mazrouei wrote on Twitter.

His comment came after a statement issued by the Iraqi Oil Marketing Company SOMO.

“There is complete consensus among the OPEC + countries that the best approach in dealing with the oil market conditions during the current period of uncertainty and uncertainty is a proactive approach that supports market stability and provides the required guidance for the future.” He said in a statement.

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

Oman and Bahrain said in separate statements that OPEC had unanimously agreed to the cut.

The Algerian Energy Minister described the decision as “historic.” He and OPEC Secretary-General Haitham Al-Ghais, who is visiting Algeria, expressed their full confidence in it, Algeria’s An-Nahar TV reported.

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

Oil stocks in major economies are at lower levels than when OPEC cut production in the past.

Some analysts said the recent volatility in the crude markets could be remedied with a downgrade that would help lure investors into an underperforming market.

On Thursday, US National Security Council spokesman John Kirby said that “more than one member” of OPEC felt Saudi Arabia was forced to participate in the vote, adding that the cut would also increase Russia’s revenue and reduce the effectiveness of sanctions imposed over its invasion of Ukraine in February. .

The official Saudi Press Agency reported that King Salman said in a speech before the Saudi Shura Council that his country is a peace broker and highlighted the Crown Prince’s initiative to release prisoners of war in Russia last month.

On Sunday, Khalid bin Salman said he was “surprised” by allegations that his country “stands with Russia in its war with Ukraine.”

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

(Report by Moataz Muhammad, Yasmine Hussein, Maha Al-Dahan, and Aziz Al-Yaqoubi). Additional reporting by Naira Abdullah and Ahmed Tolba. Editing by Louise Heavens, Will Dunham and Alexandra Hudson

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