Richard Ginika Izuora
The Organization of the Petroleum Exporting Countries, OPEC+, has defended its action of slashing output saying it was a firm agreement even as the United States warned decision comes with consequences.
The oil producers group said the body moved unanimously to cut output to prevent a crisis later on and stem a tide of volatility, the secretary-general of OPEC told an energy conference in South Africa on Tuesday.
OPEC+ member states have lined up to endorse a steep cut to its output target agreed this month after the White House accused Saudi Arabia of coercing some other nations into supporting the move.
OPEC+ comprises the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia.
OPEC Secretary-General Haitham al-Ghais told the Africa Energy Week conference: “The last ministerial meeting of the Declaration of cooperation, OPEC+, as you all know was held just a few days ago and the heads of delegations unanimously decided to take a proactive, pre-emptive stance in their efforts to foster sustainable stability in the global markets.”
He added that Africa’s oil and natural gas reserves would be sought-after as energy demand was set to rise dramatically by 2045.