OPEC+ Cut Aims at Security and Stability of Energy Markets

The decision taken this Wednesday in Vienna by the Organization of Petroleum Exporting Countries and its allies (OPEC+) was described as stabilizing by the organization's Secretary General, while the Venezuelan Oil Minister described it as transcendental.

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Today's was the first face-to-face meeting of OPEC's 13 members, led by Saudi Arabia, and its 10 partners, led by Russia, since the start of the pandemic in March 2020.

On this occasion, OPEC+ members agreed to approve a production cut of "two million" barrels per day starting in November. The organization's secretary general, Haitham al-Ghais, said, "We are not endangering the energy markets, we are providing security, stability to the energy markets."

For his part, Venezuela's Oil Minister Tareck El Aissami, via Twitter, on the largest oil supply cut since May 2020: "The decision we have adopted today in the framework of the 33rd OPEC+ Ministerial Meeting is transcendental. The balance of the energy market is fundamental to guarantee a reliable supply for all countries."

OPEC+ members also agreed to extend their cooperation for another year, so the alliance will continue at least until the end of 2023. The extension of the Declaration of Cooperation until December 31, 2023, is included in the set of decisions adopted.

In addition, an adjustment in the frequency of the monthly meetings of the Joint Ministerial Follow-up Committee (JMMC), which will be held every two months.

The U.S. believes that this move by OPEC and its allies in OPEC+ comes from an alignment with Russia. White House spokeswoman Karine Jean-Pierre said, "It is clear that with today's decision, OPEC+ is aligning itself with Russia."