Maldivian Gov't supports Saudi decision to reduce oil production
Foreign Ministry's statement went on to read that the Government of Maldives believes that the decision was made on purely economic grounds
Ministry of Foreign Affairs
The Government of Maldives has expressed its support to the Kingdom of Saudi Arabia in their decision to reduce oil production.
The statement issued by the Ministry of Foreign Affairs of Maldives states that the the Government of Maldives supports the Statement issued by the Ministry of Foreign Affairs of the Kingdom of Saudi Arabia regarding oil production.
The statement read that the Maldivian Government is in firm solidarity with the Kingdom of Saudi Arabia with regard to the decision by the OPEC+ on 5th October 2022 regarding oil production.
Foreign Ministry's statement went on to read that the Government of Maldives believes that the decision was made on purely economic grounds and determined by market variables and other technical considerations.
Additionally, the Foreign Ministry also noted that the decision of OPEC+ was by consensus of all its members and should furthermore be seen as a positive step to stabilize global oil markets, and not as a politically motivated decision.
The stability and security of the global energy market is imperative for a Small Island Developing country such as the Maldives who are highly dependent on energy imports, read the statement issued by the Maldivian Foreign Ministry.
The Ministry of Foreign Affairs concluded their statement by noting that the Government of Maldives values the efforts by the Kingdom of Saudi Arabia to encourage strong and sustained global economic growth.
OPEC+ member states lined up on Sunday to endorse the steep cut to its output target agreed this month after the White House, stepping up a war of words with Saudi Arabia, accused Riyadh of coercing some other nations into supporting the move.
The United States last week said the cut would boost Russia's foreign earnings and suggested it had been engineered for political reasons by Saudi Arabia, which on Sunday denied it was supporting Moscow in its invasion of Ukraine.
Saudi King Salman bin Abdulaziz said the kingdom was working hard to support stability and balance in oil markets, including establishing and maintaining agreement of the OPEC+ alliance.
The Saudi defense minister, King Salman's son Prince Khalid bin Salman, also said the Oct. 5 decision to reduce output by 2 million barrels per day (bpd) - despite supply tightness in oil markets - was unanimous and based on economic factors.
His comments were backed by ministers of several OPEC+ member states including the United Arab Emirates.
The UAE's energy minister, Suhail al-Mazrouei, wrote on Twitter that he would like to clarify that the latest OPEC+ decision, which was unanimously approved, was a pure technical decision, with no political intentions.
His comment followed a statement from Iraq's state oil marketer SOMO. The statement read that there is complete consensus among OPEC+ countries that the best approach is a pre-emptive approach that supports market stability and provides the guidance needed for the future.
Kuwait Petroleum Corporation Chief Executive Nawaf Saud al-Sabah also welcomed the decision by OPEC+ and said the country was keen to maintain a balanced oil markets, state news agency KUNA reported.
Oman and Bahrain echoed the comment in separate statements.
Algerian energy minister Mohamed Arkab, meanwhile, called the decision "historic" and said that he and OPEC Secretary General Haitham Al Ghais expressed full confidence in it, Algeria's Ennahar TV reported.
In a statement to Reuters on Monday, Arkab said the OPEC+ decision, was "a purely technical response based on purely economic considerations".
Oil inventories in major economies are lower than when OPEC has cut output in the past. Some analysts have said that recent volatility in crude markets could be remedied by a cut that would help attract investors.
Umer Karim, a research fellow at the University of Birmingham, said OPEC countries are attempting to project unity. Karim said that the emphasis on the word 'technical' also suggests that these member states are sending a message to the U.S. that they are not a party in this row between Riyadh and Washington.
OPEC+ comprises the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia.
