ABU DHABI—The United Arab Emirates believes OPEC+ made the right technological choice when it agreed to cut production targets, and the unanimous decision had nothing to do with politics, Suhail Al said. Energy Minister Mazroui said on Tuesday.
His comments came after several members of the oil producers’ group backed a drastic cut in production targets agreed this month.
OPEC+ is made up of the Organization of the Petroleum Exporting Countries and allies, including Russia.
“We fully trust and believe in the technical reliability of OPEC and OPEC+. We always discuss the facts based on market analysis and take appropriate measures to balance supply and demand. We discuss the method, the decision was always unanimous and the final decision was made with the same logic,” Masrouei told reporters.
“I would like to reiterate that there is nothing political in any decision we take in OPEC.”
Ahead of November’s midterm elections in the US, the move drew sharp criticism from the Biden administration, who said there were “consequences” for US relations with Riyadh.
The US has stressed that the cuts will boost Russia’s foreign revenues and blunt the effectiveness of sanctions imposed for its invasion of Ukraine.
Kuwait’s foreign ministry said in a statement on Tuesday that the joint decision had a “purely economic framework” and backed the Saudi stance on the cuts.
Maslowi said OPEC+’s decision stabilized prices rather than pushed them higher, adding that the lack of stability has alienated investors.
“Prices have stabilized and in fact looking ahead to October 2021 we see that we are in the same price environment before all crises, geopolitical crises,” he said. Minister said.
He expressed concern that many oil producers were losing capacity due to lack of investment.
Asked whether the UAE plans to demand a higher baseline to build a production capacity of 5 million barrels per day by 2030, Mazrouei said any country has a mechanism to raise that demand. said.
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