OPEC+ slams buyers dictating oil prices unacceptable: Siluanov

By Al Mayadeen English
Source: Agencies
24 Oct 2022 09:07

When "dictations" and "pressures" are mentioned, the US is the buyer insinuated at.

The logo of the Organization of the Petroleum Exporting Countries (OPEC) (Reuters)

The Organization of the Petroleum Exporting Countries and non-cartel producers (OPEC+) states slam the act whereby buyers try to dictate oil prices as unacceptable, stressing that those restrictions on their part will lead to the opposite effect, according to the Russian Finance Minister Anton Siluanov.

The OPEC+ group agreed to cut oil production in early October by 2 million barrels per day beginning in November and intends to take production levels expected for August as a reference point. The move came in response to uncertainty in global oil market outlooks, in a large part caused by Western sanctions on Russian energy products.

"Naturally, the OPEC countries considered such an approach [the buyer dictating the price] unacceptable for themselves and decided to reduce the volume of production, thus showing that the regulation of the market is up to the manufacturer. Yes, of course, consumers can impose restrictions. But if oil is not supplied under such restrictions, then they will have the opposite effect as a result of rising prices," Siluanov told Russian broadcaster RBK.

In the same context, South African President Cyril Ramaphosa welcomed on Sunday the decision of Saudi Arabia and other counties of the Organization of the Petroleum Exporting Countries (OPEC) to decrease oil production to stabilize the global energy market, he was quoted as saying by his press office.

"President Ramaphosa has welcomed the decision by the Kingdom of Saudi Arabia and other OPEC countries to focus on price stabilization in their management of oil production," the statement read.

In another event, Iraq called for dialogue on October 19 in order to resolve differences that have arisen in connection with the OPEC+ decision to cut oil output and rejects the policy of pressure on the alliance's countries, according to an Iraqi Foreign Ministry statement obtained by Sputnik.

"The Iraqi Foreign Ministry rejects any policy aimed at exerting pressure and supports the position of OPEC, including Saudi Arabia," the statement read.

The Ministry emphasized that within the organization, a "technical point of view related to stability in the oil markets, their requirements, organization of the supply and demand process, protection of the interests of consumers and producers" is expressed.