OPEC+ oil cut purely economics, says Saudi Arabia

The government of Saudi Arabia through the Foreign Ministry in the Kingdom has said that the decision to cut oil production by two million barrels per day (mbpd) for November by the Organization of Petroleum Exporting Countries and its allies is purely economic.

An official statement by Saudi Arabia debunked the statements issued about the Kingdom following the OPEC+ decision announced on October 5, 2022, which described the decision as the Kingdom taking sides in international conflicts and that it was politically motivated against the United States of America.

“The Government of the Kingdom of Saudi Arabia would first like to express its total rejection of these statements that are not based on facts, and which are based on portraying the OPEC+ decision out of its purely economic context. This decision was taken unanimously by all member states of the OPEC+ group,” the statement read.

The Kingdom affirms that the outcomes of the OPEC+ meetings are adopted through consensus among member states and are not based on a unilateral decision by a single country.

“These outcomes are based purely on economic considerations that take into account maintaining the balance of supply and demand in the oil markets, as well as aim to limit volatility that does not serve the interests of consumers and producers, as has always been the case within OPEC+.

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“The OPEC+ makes its decisions independently in accordance with established independent practices followed by the international organizations,” it read.

Meanwhile, the Government of the Kingdom of Saudi Arabia said it clarified through its continuous consultation with the US Administration that all economic analyses indicate that postponing the OPEC+ decision for a month, according to what has been suggested, would have had negative economic consequences, based on its belief in the importance of dialogue and exchange of views with its allies and partners outside the OPEC + group regarding the situation in the oil markets.

“We affirm that any attempts to distort the facts about the Kingdom’s position regarding the crisis in Ukraine are unfortunate, and will not change the Kingdom’s principled position,” the statement read.

The Kingdom further stresses that while it strives to preserve the strength of its relations with all friendly countries, it affirms its rejection of any dictates, actions, or efforts to distort its noble objectives to protect the global economy from oil market volatility.

According to the statement, the Kingdom affirms that it views its relationship with the US as a strategic one that serves the common interests of both countries.

In addition, the Kingdom stresses the importance of building on the solid pillars upon which the Saudi-US relationship had stood over the past eight decades.

“These pillars include mutual respect, enhancing common interests, actively contributing to preserving regional and international peace and security, countering terrorism and extremism, and achieving prosperity for the people of the region,” the statement read.