OPEC output slash purely to balance supply and demand

While the United States cautioned that the move would have repercussions, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) defended their action of reducing output by saying it was a firm agreement.

Timipre Sylva, Nigeria's state minister for petroleum resources, claimed that the OPEC's decision to reduce output of crude oil by two million barrels was made unanimously.

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 that it was done solely to ensure the oil market's long-term stability. “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 secretary-general of OPEC said on Tuesday at an energy summit in South Africa that the organisation unanimously decided to reduce output to avert a future catastrophe and stop a wave of volatility.

After the White House accused Saudi Arabia of pressuring certain other countries into backing the decision, OPEC+ member states lined up to support a drastic reduction in its output target announced this month.

Organization of the Petroleum Exporting Countries (OPEC) and additional producers, like as Russia, make up OPEC+.

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 continued by saying that as energy consumption was expected to increase significantly by 2045, Africa's oil and natural gas deposits will be in high demand.