CAIRO: Oman’s energy ministry said on Sunday 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 added.

OPEC cuts 2022, 2023 oil demand growth view as economy slows

The ministry added that the decision was necessary to reassure the market and stabilise it.

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.