Representatives from OPEC+ participating countries have lined up to defend the group’s recent decision to cut its total production by two million barrels per day.
The decision has been criticised in some quarters, particularly by the White House, which has questioned the reasoning for the cut and claimed that it will serve to increase Russia’s foreign earnings. Prominent figures have reinforced the assertion of Saudi Prince Khalid bin Salman that the decision was based on economic reasoning and made unanimously. Suhail al-Mazrouei, the energy minister of the United Arab Emirates, clarified on Twitter that the unanimous decision was purely technical in nature and free from political influence, while SOMO, the state oil marketer of Iraq, issued the following statement:
“There is complete consensus among OPEC+ countries that the best approach in dealing with the oil market conditions during the current period of uncertainty and lack of clarity is a pre-emptive approach that supports market stability and provides the guidance needed for the future.”
Officials from Kuwait, Bahrain, Oman and Algeria also issued statements with similar sentiments. With the oil markets having been somewhat volatile in recent months, some analysts argue that a production cut was necessary to stabilise prices enough to attract investors to the market. Stable prices would also likely incentivise majors like Shell and ExxonMobil, the maker of the Mobil DTE hydraulic oil range, to push ahead with the capital investment that will be needed to ensure that supply continues to meet demand in the medium term.