South African President Welcomes OPEC+ Oil Production Cuts to Stabilize Market

MOSCOW, (Sputnik) - South African President Cyril Ramaphosa welcomed the decision of Saudi Arabia and other counties of the Organization of the Petroleum Exporting Countries (OPEC) to trim oil production with a view to stabilizing the global market, his press office said on Sunday.

"President Ramaphosa has welcomed the decision by the Kingdom of Saudi Arabia and other OPEC countries to focus on price stabilization in their management of oil production," the statement said.

Soaring oil prices result in higher fuel costs in South Africa, putting even more strain on small businesses, consumers and households, the statement said, noting that Ramaphosa "appreciated the development as a measure that could provide relief to South Africa's pressured economy."

In early October, OPEC+ unanimously agreed to decrease oil production by two million barrels per day starting in November in response to uncertainty in global energy markets.

The Biden administration condemned the supply cut as short-sighted amid rising energy prices in the US and Europe, accusing Saudi Arabia of aligning itself with Russia.

Riyadh has rejected these allegations, saying that the decision to slash oil production was to stabilize the global market amid declining demand caused by a slowing economy around the world.