The Organization of the Petroleum Exporting Countries and its allies (OPEC+) has defended its action of slashing output saying, it was a firm agreement even as the United States warned decision comes with consequences.
Nigeria’s minister of state Petroleum Resources Chief Timipre Sylva said that the OPEC, decision to cut two million barrels of crude oil production is a unanimous one.
Sylva said this in a statement entitled “On OPEC+ decision to cut crude oil production.” He said that the step was taken to stabilise the market and not for any ulterior motives. Sylva said the decision which was taken by OPEC+ during its ministerial meeting on Oct. 5, to voluntary adjust crude oil production downward by two million barrels per day was unanimous.
He said it was taken for the exclusive purpose of ensuring the long-term stability of the oil market. “It was purely to balance supply and demand, and forestall a degeneration of the current volatile oil market to a situation where larger production cuts will be required to balance it.
active decision was based on a thorough assessment of market conditions as OPEC plus has always been guided,” he said.
The oil producers group said the body moved unanimously to cut output to prevent a crisis later on and stem a tide of volatility, the secretary-general of OPEC told an energy conference in South Africa on Tuesday.
OPEC+ member states have lined up to endorse a steep cut to its output target agreed this month after the White House accused Saudi Arabia of coercing some other nations into supporting the move.
OPEC+ comprises the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia.
OPEC secretary-general, Haitham al-Ghais told the Africa Energy Week conference: “The last ministerial meeting of the Declaration of cooperation, OPEC+, as you all know was held just a few days ago and the heads of delegations unanimously decided to take a proactive, pre-emptive stance in their efforts to foster sustainable stability in the global markets.”
He added that Africa’s oil and natural gas reserves would be sought-after as energy demand was set to rise dramatically by 2045.