{"id":2029,"date":"2022-10-20T16:51:28","date_gmt":"2022-10-20T16:51:28","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=2029"},"modified":"2022-10-20T16:51:32","modified_gmt":"2022-10-20T16:51:32","slug":"opec-mandated-output-cuts-are-not-about-politics-african-ministers-insist","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/2029\/","title":{"rendered":"\u2018OPEC Mandated Output Cuts Are Not About Politics\u2019, African Ministers Insist"},"content":{"rendered":"
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African energy ministers have dismissed the misgivings that the OPEC-mandated cut in oil production was a politically motivated move that they were forced to comply with, arguing that the decision was based on technical data and fully supported by all members.<\/p>\n\n\n\n

Gabriel Mbaga Obiang Lima, Equatorial Guinea\u2019s Minister of Mines and Hydrocarbons, and Puot Kang Chol, South Sudan\u2019s Minister of Petroleum, both said that the two million barrels per day reduction decided during the Ministerial Meeting in early October 2022 was supported by every member of OPEC+., that is the Organization of Petroleum Exporting Countries (OPEC) and its allies.<\/p>\n\n\n\n

\u201cIf OPEC decides to have a meeting and decide something, its decision is not up for debate by others. We were not forced to agree to production cuts. Each country entered OPEC willingly. We were not forced by anyone: we did it purposefully,\u201d Mr. Chol declared at a panel discussion in the course of the Africa Energy Week (AEW) conference and exhibition in Cape Town, South Africa. \u201cIt was not a political decision but a technical agreement, and therefore, should only be addressed technically and not politically.\u201d<\/p>\n\n\n\n

Citing concerns over an impending global recession and ongoing market instability, OPEC+\u2019s decision to cut oil production aims to stabilize the market and ensure more consistency between the physical and paper markets. Yet, following OPEC\u2019s decision, accusations that the move to cut production was based on political drivers began to surface, with the international community \u2013 the U.S. in particular \u2013 accusing the organization of bowing to Russia\u2019s agenda.<\/p>\n\n\n\n

\u201cThe decision at OPEC was not political\u201d, Lima of Equatorial Guinea weighed in. \u201cWhat the consumers and producers want is the stability of pricing and demand. If you look at the price for consumers, the price has not gone down: it has been maintained.\u201d<\/p>\n\n\n\n

Over the last two years, the global oil market has seen the highest fluctuation in decades, with COVID-19 and ongoing geopolitical tensions causing prices to skyrocket, supply to be short, and countries worldwide seeking more stability. Oil prices were at their highest in years at the beginning of 2022, measuring upwards of $130 per barrel \u2013 compared with 2020 lows of just short of $40 per barrel. For consumers, this has caused significant stress, with prices changing significantly and fuel being in short supply.<\/p>\n\n\n\n

Haitham Al Ghais, Secretary General of OPEC, delivering a keynote presentation at the same conference, noted that the group has prioritized market stability, with the production cuts expected to help meet this objective. \u201cThe producers of the declaration of cooperation remain a vital stabilizing force despite being in a period of great uncertainty. The last meeting was held a few days ago and the heads of delegations unanimously decided to take a proactive stance to create stability in global markets. With the very real potential of a global recession, there was a consensus among the ministers. I would like to thank the African heads of delegations for their ongoing support to provide lasting stability in global oil markets,\u201d adding that, \u201cOur efforts at the declaration of cooperation aim to provide stable oil markets.\u201d<\/p>\n

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