RIYADH: Algerian Energy Minister Mohamed Arkab has hailed the decision of the Organization of Petroleum Exporting Countries, and its allies, known as OPEC+, to slash output by 2 million barrels per day. 

Calling the move “historic,” Arkab noted that the decision was taken to stabilize the global oil market, Ennahar TV reported. 

According to the report, both Arkab and OPEC Secretary-General Haitham Al-Ghais expressed their full confidence in the organization’s decision. 

Al-Ghais also added that the oil market has been going through a stage of great fluctuation, and noted that OPEC and producers outside the organization are trying to maintain market stability. 

The decision to cut oil output received widespread criticism from western countries including the US, as they claim that the slash will tighten the market further. 

The International Energy Agency also slammed the decision, and warned that the oil output cut could push the global economy into recession. 

“The relentless deterioration of the economy and higher prices sparked by an OPEC+ plan to cut supply are slowing world oil demand. With unrelenting inflationary pressures and interest rate hikes taking their toll, higher oil prices may prove the tipping point for a global economy already on the brink of recession,” said IEA in the report. 

Meanwhile, Ali bin Sabt, secretary-general of the Organization of Arab Petroleum Exporting Countries, known as OAPEC, said that the OPEC+ decision to cut its oil production target is correct, and was taken at the right time, Reuters reported. 

He also added that the decision was made in line with the successful approach taken by OPEC+ in taking effective and proactive steps to avoid oil market imbalances, especially on the demand and supply sides. 

On Oct.11, a report released by rating agency Fitch noted that the output slash from November will have a muted impact on the global oil market, as the actual output cuts will be smaller. 

According to the report,  Saudi Arabia and the UAE will have to make the largest actual cuts to production, while other OPEC+ countries including Nigeria will have some room under their quotas to hike output. 

“The recent increases in global oil inventories suggest that the market is in a production surplus,” said Fitch in its report. 

The report added: “We expect OPEC+ to target a broad balance in the oil market by changing production quotas and available crude supplies, although it may become increasingly difficult to achieve a consensus among the members due to demand uncertainties and the recession in large developed markets.”