Saudi Arabia says Opec+ oil cut ‘purely economic’

Saudi Arabia says Opec+ oil cut ‘purely economic’

Saudi Arabia rejects framing Opec+ decision as political; Says it told US a delay would be economically negative; Decision was based on market balance, curbing volatility

The Opec logo pictured ahead of an informal meeting between members of the Organisation of the Petroleum Exporting Countries (Opec) in Algiers, Algeria. — Reuters file photo

By Reuters Published: Thu 13 Oct 2022, 4:17 PM

Saudi Arabia rejected as “not based on facts” criticism of an Opec+ decision last week to cut its oil production target despite US objections, and said Washington’s request to delay the cut by a month would have had negative economic consequences.

The Opec+ decision was adopted through consensus, took into account the balance of supply and demand and was aimed at curbing market volatility, the Saudi foreign ministry said in a statement on Thursday.

US President Joe Biden pledged earlier this week that “there will be consequences” for US relations with Saudi Arabia after Opec+ said last week it would cut its oil production target by 2 million barrels per day.

Opec+, the producer group comprising the Organization of the Petroleum Exporting Countries (Opec) plus allies including Russia, announced its new production target after weeks of lobbying by US officials against such a move.

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