OPEC+ member states lined up on Sunday to endorse the production cut agreed this month after the US had accused Riyadh of coercing some other nations into supporting the move.
Algeria's Energy Minister Mohamed Arkab called the decision “historic” and expressed his full confidence in it, Algeria's Ennahar TV reported.
“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,” Iraq's state oil marketer SOMO said in a statement.
Iraq is OPEC’s second largest oil producer.
SOMO’s statement explained that “there is a close link between the demand for oil and the growth of the global economy, as one is greatly affected by the other.”
The International Monetary Fund (IMF) had indicated that the global economy is on the verge of recession at a very large rate.
“If a global recession takes place, it will reduce the demand for crude oil,” SOMO explained, adding that the oil production cut decision by OPEC+ was necessary to achieve market balance considering the deteriorating situation.
Kuwait Petroleum Corporation Chief Executive Officer Nawaf Saud al-Sabah also welcomed the decision by OPEC+ and said the body was keen to maintain a balanced oil market, state news agency KUNA reported.
Oman and Bahrain said in separate statements that OPEC had unanimously agreed on the reduction.
Oman’s Energy Ministry said that the decision to cut oil production by 2 million barrels per day was necessary to reassure the market and stabilize it.
The ministry said that OPEC+ decisions are based on purely economic considerations and realities of supply and demand in the market.
The Organization of Arab Petroleum Exporting Countries (OAPEC) said on Saturday that the decision of OPEC+ to cut its oil production target was exact and was taken at the right time.
OAPEC comprises Algeria, Bahrain, Egypt, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, Syria, Tunisia and the UAE.
