The energy minister of de facto leader of the Organization of Petroleum Exporting Countries (OPEC), Saudi Arabia, defended the group’s oil pact decision on Monday.
International reports disclosed that Saudi Arabia’s Energy Minister Abdulaziz bin Salman said that decisions by the Organization of Petroleum Exporting Countries (OPEC) are not ‘politicized’ and can be altered in line with market fundamentals.
Speaking at the Saudi Media Forum in the capital city of Riyadh, Salman added that the group is ‘sufficiently flexible to adjust policy as needed.’
The group has been cutting its oil output by 2 million barrels per day (bpd) since October.
In its oil market report published last week, the group predicted that oil demand would increase by 2.32 million bpd in 2023 to reach 101.87 million bpd.
The group was widely criticized for reducing the output by 2 million bpd while most western countries had been urging the group to add more barrels in the face of supply disruptions caused by the Russia-Ukraine war and sanctions on Russian oil and gas exports.
Saudi Arabia, however, denied accusations that political motives were behind the decision.
‘Saudi Arabia does not politicize oil. We don’t see oil as a weapon. We see oil as our commodity. Our objective is to bring stability to the oil market,’ Saudi Minister of State for Foreign Affairs Adel al-Jubeir told news channel CNN on Oct. 13.
Al-Jubeir reiterated that the decision was purely economic ‘to maintain stability in the oil markets,’ adding that they were not siding with Russia on this issue.
US President Joe Biden had pressured Saudi Arabia into pumping more oil and warned of ‘consequences’ from the oil production cut.
