OPEC: Move to Cut Oil Output Was Unanimous to Prevent Crisis

OPEC: Move to Cut Oil Output Was Unanimous to Prevent Crisis

The Organization of the Petroleum Exporting Countries (OPEC) Secretary-General Haitham al-Ghais said on Tuesday that OPEC+ alliance took an unanimous decision to cut oil output as a pre-emptive measure to prevent a crisis.

Speaking at the African Energy Week in South Africa, al-Ghais said the heads of delegations unanimously decided to take a proactive stance to create stability in global markets.

He said if investments in oil were not met, there could eventually be a serious supply shortfall resulting in more heightened volatility.

The OPEC Secretary-General also stressed that Africa's oil and natural gas reserves would be sought-after as energy demand was set to rise dramatically in the coming decades.

Earlier this month, the OPEC+ alliance of oil-exporting countries decided to cut oil production by 2 million barrels per day starting in November to balance between supply and demand. The US said it was disappointed by the decision.

However, Arab states and OPEC+ member states lined up to endorse the production cut in support of the Saudi vision to deal with the world oil markets.

Iraq, Kuwait, Bahrain, the Sultanate of Oman, Algeria, the UAE, Egypt, Morocco and Jordan expressed their support for the decision.

They issued separate statements confirming their support for the OPEC+ production cut