The controversial decision to cut daily output by two million barrels starting at the beginning of next month was justified by the members of the OPEC Plus Gathering for oil-exporting nations, who claimed that the rising risk of global economic stagnation warrants the reduction in production.
Suhail Al Mazrouei, the oil minister for the Emiratis, was quoted by the Bloomberg News Agency as saying that the decision to reduce production was made solely based on the accounts of supply and demand, and that the continued decline in crude prices since the decision to reduce production was announced on October 5 confirms the accuracy of the decision.
The oil ministers of the Congo and Equatorial Guinea took the same stance, and the secretary-general of the organisation of OPEC exporting countries declared that the group was forced to take preventive action.
Haitham Al -Gais, Secretary -General of OPEC, said during his participation in the African Energy Week in Cape Town, South Africa, that the oil market faces “a real possibility of economic recession, which could have already begun.
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There is agreement among the ministers in OPEC Plus, he continued, “on the need to act now to avert a problem later.”
According to the International Energy Agency, OPEC Plus could cause a global economic downturn.
During the past week, many OPEC Plus countries, including Saudi Arabia, confirmed that the decision to reduce production was based on purely economic considerations..
OPEC Plus: The possibility of a global economic downturn justifies a decrease in oil production.
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