(Original title: UAE energy minister: OPEC+ production cut is the right decision, not political)
Financial Associated Press, October 18 (Editor Xia Junxiong)On Tuesday (October 18) local time, UAE Energy Minister Mazroui said that OPEC+ agreed to cut production unanimously, which was a correct technical choice and had nothing to do with politics.
Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies (led by Russia) decided to cut crude oil production by 2 million barrels per day, the most since the outbreak of the new crown epidemic, as global oil prices fluctuated lower. The move shows the alliance’s determination to stabilize oil prices.
However, the OPEC+ production cuts caused strong dissatisfaction in the United States. The U.S. had previously asked OPEC+ to increase production capacity to help lower gasoline prices. The White House has accused Saudi Arabia of coercing some OPEC+ members to support production cuts, an accusation the kingdom denies.
“We have complete trust in the technical credibility of OPEC and OPEC+,” Mazroui said. “We meet frequently and discuss facts based on our analysis of the market and work on how to work on the right measures to balance supply and demand. We always Decisions were made unanimously, and recent decisions are based on the same logic.”
He added: “I want to reiterate that there is no political overtone to any decision we make at OPEC.”
With the US mid-term elections approaching, lowering oil prices has become a priority issue for the US government. U.S. President Joe Biden sharply slammed the OPEC+ decision to cut production and threatened to reconsider the relationship between the United States and Saudi Arabia.
The U.S. reasoning is that OPEC+ production cuts will push up oil prices, thereby increasing Russia’s oil revenue, which weakens the effect of Western sanctions on Russia.
Mazroui argued that the OPEC+ decision stabilized rather than pushed up oil prices, and it was the lack of stability that kept investors away.
“Oil prices have been stabilizing, actually, if you look at October 2021 (before all the crises), we’re in the same price environment,” Mazroui said, stressing that , many oil producers have lost production capacity due to lack of investment, and they are worried about this.