Oman: OPEC+ decision to cut oil production based on economic consideration

Oman's energy ministry has said that OPEC+ decisions are based on purely economic considerations, realities of supply and demand in the market.

The OPEC+ decision to cut oil production by 2 million barrels per day "is in line with the group's previous decisions in terms of being based on market data and its variables", and it was important and necessary to reassure the market and support stability, the ministry said on Sunday.

READ MORE: Al Thani, Putin discuss Russia-Ukraine conflict's impact on energy markets

The 13-member Organization of the Petroleum Exporting Countries and its allies, which include Russia, lowered its production target by 2 million barrels per day when they met on October 5.

The move came despite fuel markets remaining tight, with inventories in major economies at lower levels than when OPEC has cut output in the past.

Meanwhile, Bahrain's oil minister said that the decision was taken unanimously and after a thorough technical study of the global market conditions and developments, state news agency (BNA) reported.

READ MORE: Will OPEC’s move to cut production drive a wedge in US-Saudi relations?

Member states are keen to take decisions that aim to stabilise oil markets, and the group will study any economic developments to ensure the stability of global markets and supplies and the balance between the interests of producers and consumers, the Bahraini minister added.