Oil output target cuts agreed by OPEC+ producers will leave them more supply to tap in the event of any crises, OPEC Secretary-General Haitham al-Ghais told Al Arabiya TV on Oct. 7.
OPEC+, which includes the 13 members of OPEC and 10 allies led by Russia, agreed on Oct. 5 to lower their output target by 2 million bbl/d.
OPEC's de facto leader Saudi Arabia said the move was necessary to respond to rising interest rates in the West and a weaker global economy.
The decision was criticized by the U.S. where the White House said it was a sign the group was aligning itself with Russia.
U.S. President Joe Biden also faces mid-term elections next month in which high energy prices are a hot topic.
“This was not a decision from one country against another, and I want to be clear in saying this, and it’s not a decision from two or three countries against a group of other countries,” said Ghais.
“There are strong indicators that there is a high possibility that recession will happen, we decided in this meeting to be pre-emptive.”
Western nations worry higher energy prices will hurt the fragile global economy and hinder efforts to deprive Moscow of oil revenue following its invasion of Ukraine.
EU sanctions on Russian crude and oil products are also set to take effect, in December and February, respectively.
Asked about the sanctions and a European Union proposal to cap the price of Russian oil, OPEC’s Ghais said he could not comment.
“The truth is, the shape of these proposed sanctions is not quite clear, and how they will be implemented is also unclear, so we cannot comment.”
Ghais also said OPEC+ does not target prices: “We are not targeting a price, we are targeting a balance in supply and demand.”
Recommended Reading
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.
Dividends Declared Sept.16 through Sept. 26
2024-09-27 - Here is a compilation of dividends declared from select upstream, midstream and service and supply companies.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.