OPEC+ members line up to support production cuts after US coercion calls

CAIRO (Reuters) – OPEC+ member states lined up on Sunday to agree to a sharp production cut agreed this month after the White House, in escalating its war of words with Riyadh, claimed Saudi Arabia pushed some other countries to the move.

Iraq, OPEC’s second-largest exporter, said the decision was based on economic indicators and was taken unanimously.

“There is complete consensus among OPEC + countries that the best approach to dealing with the oil market conditions during the current period of uncertainty and uncertainty is a proactive approach that supports market stability and provides the future with the guidance it needs.” State oil marketing company SOMO said in a statement.

Oman and Bahrain said in separate statements that OPEC + – which includes other major producers, notably Russia – was unanimous in deciding to cut two million barrels per day.

Algeria’s Energy Minister described the October 5 decision as “historic” and he and OPEC Secretary-General Haitham al-Ghais, who is currently visiting Algeria, expressed their full confidence in it, Algeria’s An-Nahar TV reported.

The cut came despite tightening oil markets, with inventories in major economies at lower levels than when OPEC cut production in the past.

But some analysts said that the recent volatility in the crude oil markets could be remedied with a downgrade that would help attract investors to a market that has been underperforming from fundamentals.

US National Security Council spokesman John Kirby said Thursday that “more than one member” of OPEC felt Saudi Arabia was being forced to participate in the vote, adding that the cut would also increase Russia’s revenue and reduce the effectiveness of sanctions imposed over its invasion of Ukraine.

The Omani Ministry of Energy said that OPEC + decisions are based solely on the realities of supply and demand in the market.

(Covering by Moataz Muhammad, Yasmine Hussein, and Maha Al-Dahan). Editing by Louise Heavens, Alexandra Hudson

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