Gulf oil ministers back OPEC+ output decision

Dubai: Gulf energy ministers backed OPEC+ ouput decision to cut oil output by 2 million barrels per day. 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.

Saudi 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 Prince Khalid bin Salman, also said the Oct 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 - and said the country was keen to maintain a balanced oil markets, state news agency KUNA reported.

Oman and Bahrain said in separate statements that OPEC had unanimously agreed on the reduction.

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.

Oman’s energy ministry echoed the statement and said that OPEC+ decisions are based on purely economic considerations, realities of supply and demand in the market.

The OPEC+ decision to cut oil production by 2 million barrels per day “is in line with the group’s previous decisions in terms of being based on market data and its variables”, and it was important and necessary to reassure the market and support stability, the ministry added.

The ministry added that the decision was necessary to reassure the market and stabilise it.