Saudi Arabia: "Delaying Production Cut by a Month as Requested by the US Will Harm the Economy"

"OPEC+ Decision Based on the Principles of Supply and Demand"

[Image source=AP Yonhap News]

Saudi Arabia recently claimed that the OPEC Plus (OPEC+) oil-producing countries' decision to implement large-scale production cuts was based on economic logic.

On the 12th (local time), the Saudi Ministry of Foreign Affairs stated in a press release that the production cut decision was made to balance supply and demand while curbing market volatility.

The Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ group, which includes major non-OPEC oil producers such as Russia, agreed at this month's regular meeting to reduce daily crude oil production by 2 million barrels. The Biden administration in the United States, which has been working hard to control global inflation following Russia's invasion of Ukraine, expressed disappointment over OPEC+'s production cut decision and even hinted at the possibility of reassessing relations with Saudi Arabia.

In response, the Saudi Ministry of Foreign Affairs emphasized in its statement that the decision was "purely made after continuous consultations and analysis with oil-producing countries," and warned that "delaying the production cut by a month as requested by the United States would have negative economic consequences." The statement also added that the relationship between Saudi Arabia and the United States is strategic, and mutual respect is essential to maintain it.

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