ECONOMY

Wed 15 Mar 2023 8:12 pm - Jerusalem Time

Arab countries confirm that the “OPEC Plus” decision to reduce oil production is “purely economic”

Arab capitals (Xinhua) Arab countries affirmed (Tuesday) that the recent decision of the " OPEC Plus Group " to reduce oil production is a purely technical and economic decision that was taken unanimously by the member states.


The Kuwaiti Ministry of Foreign Affairs said, in a statement published on its official account via Twitter, that “the decision taken by the OPEC Plus group came based on pure economic studies in which the balance of supply and demand in the global oil markets was taken into account, in a way that preserves these markets from fluctuations and serves interests of both producers and consumers.


She added, "This decision was unanimously agreed upon by all OPEC Plus member states, in accordance with the prevailing norms in international organizations."


The statement expressed Kuwait's "full and comprehensive" solidarity with the Kingdom of Saudi Arabia regarding the statements made in the wake of the decision taken by the OPEC Plus group, which "extracted the decision from its pure economic framework."


The statement praised "the pioneering role played by the brotherly Kingdom of Saudi Arabia and its contributions in facing regional and international challenges and its role in addressing them in a way that preserves the common interests of countries, maintains international peace and security, and supports the balance of the oil market and global economic stability."


On October 5, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as "OPEC Plus" that includes Russia, announced a significant production cut of two million barrels per day, starting next November, to boost oil prices, which have recently fallen due to recession fears.


The OPEC Plus decision sparked US criticism of Saudi Arabia and accusations of siding with Russia, according to reports, which Riyadh rejected.


Today, Sudan announced its support for the decision of the "OPEC Plus" group to reduce oil production.


The Sudanese Foreign Ministry said, in a press statement, that it "followed the repercussions of the OPEC Plus decision to reduce oil production, and the campaign against the Kingdom of Saudi Arabia and attempts to hold it accountable for the consequences of the decision."


The statement added, "Sudan, as a member of the group, affirms that the decision to reduce oil production came by consensus and unanimity among all member states."


The statement affirmed Sudan's support for the position expressed by the Kingdom of Saudi Arabia that the decisions of "OPEC Plus" are based on purely economic considerations, and on the facts of supply and demand, in order to achieve stability in energy markets and serve the interests of all dealers in them.


In Jordan, the official spokesman for the Ministry of Foreign Affairs and Expatriate Affairs, Ambassador Sinan Majali, said in a statement, "The ministry is following with interest the reactions to the OPEC Plus decision to reduce oil production and the tensions that the decision resulted in."


Majali added, "This is a technical issue linked to the stability of oil markets and its requirements, organizing the supply and demand process, and protecting the interests of producers and consumers, and it must be approached on technical grounds, and in its economic context, away from political tensions that do not serve common goals and interests."


Al-Majali stressed, "the need to address this issue through direct and balanced dialogue between the Kingdom of Saudi Arabia and the United States of America, and within the framework of the spirit of partnership that brings the two countries together, and in a way that reflects the importance of this partnership in efforts to consolidate security and stability in the region and beyond, and the centrality of Saudi Arabia's main role in it, and the importance of the role of the United States." United States of America".


He stressed that "Jordan supports all the steps taken by the Kingdom of Saudi Arabia to protect its security, stability and interests."


Today, Tunisia expressed its support for Saudi Arabia's position regarding reducing oil production within the "OPEC Plus" group, starting from next November, and described it as "well-founded".


The Tunisian Ministry of Foreign Affairs said, in a statement, that the decision to reduce oil production "was taken unanimously by all the countries of the OPEC Plus group, and that the position of the Kingdom of Saudi Arabia on this decision is valid in terms of its purely technical nature."


And she considered that the relevance of this decision is also linked to "the balances of supply and demand imposed by the global market, and the instability that may have repercussions on producing, exporting and consuming countries alike."


Today, Qatar expressed its refusal to politicize the decision of the “OPEC Plus” group related to reducing oil production, stressing that the decision was purely technical and economic and was taken unanimously to achieve a balance between supply and demand and in the interest of members.


Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, Managing Director and CEO of Qatar Energy Company, said today at a press conference in Doha, "As for us, we are no longer members of the Organization of Petroleum Exporting Countries (OPEC), but what we know about (OPEC) from our experience as a former member is that their decisions are adopted." on a commercial and technical basis.


Al-Kaabi explained, at the conference held on the sidelines of the inauguration of the Al-Kharsa’a solar power plant in the country, that OPEC’s decisions are based on data they study regarding the balance between supply and demand in the oil market, noting that the organization and all relevant ministers stated that the decision was taken unanimously according to what they saw. It is in the interest of the members.


He went on to say, "As for the politicization of the issue, I believe that such organizations should be separated from the political nature and we do not consider their decisions to be political decisions. In my opinion, it is a purely technical and economic decision based on what the organization deems to be in the interest of its affiliates."


On the other hand, Al-Kaabi stressed during the conference that his country will not transfer shipments of gas already contracted with Asian buyers to Europe this winter, stressing Qatar's commitment to the contracts it signs with any buyer.


In this context, he said, "Qatar is committed to the contracts it signed, and this is the basis for our dealings in the past and present. When we sign with an Asian or European buyer, we are committed to the signed agreement, and therefore we have been trusted by our customers around the world for more than 27 years."


He added that the amount of gas that will go to Europe is that allocated to the European market, which Qatar has committed to not being transferred outside Europe, but it will not transfer any shipments from Asian buyers to Europe.

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Arab countries confirm that the “OPEC Plus” decision to reduce oil production is “purely economic”

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