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OPEC+ decision to cut oil output in October is due to global economic slowdown — Novak

As it is stated, further OPEC+ countries will monitor the situation and meet every month

MOSCOW, September 5. /TASS/. The decision of OPEC+ to reduce oil production quota by 100,000 barrels per day in October was taken due to the fact that there is a slowdown in economic growth on the world market, Russian Deputy Prime Minister Alexander Novak said in an interview with the Rossiya-24 TV channel.

"This decision was made due to the fact that we considered the current situation on the market, made an assessment, heard the reports of the OPEC+ technical committee, the situation is such that it allows us to make corrections. We see that the gross domestic product, the growth of the world economy has been corrected by our colleagues. Earlier it was predicted at 3.5% growth, now it is estimated at 3.1%. Therefore, as part of our agreement, we decided to adjust the quotas," he added.

According to him, further OPEC+ countries will monitor the situation and meet every month. He stressed that the attempt to impose a cap on the price of oil in the Russian Federation by Western countries creates volatility on the market. This is one of the reasons why OPEC+ should quickly influence the situation.

At the OPEC+ meeting on September 5, the alliance members approved a reduction in oil production in October by 100,000 barrels per day. According to the final communique, the OPEC+ countries will revert to the production level of August 2022. The document stresses that that the upward adjustment of 0.1 mb/d to the production level was only intended for September 2022.

The ministers of the OPEC + countries also agreed to hold alliance meetings at any time in order to respond to the market situation. The next OPEC+ meeting is scheduled for October 5th.