Today, Tuesday, the Saudi and Emirati energy ministers defended the option of the Organization of Petroleum Exporting Countries (OPEC), the OPEC + group led by Saudi Arabia and Russia, not to increase production in accordance with Western demands, especially the United States of America, in light of the rise in prices following the Russian invasion of Ukraine.
and waiting international markets Meetings of the Organization of Petroleum Exporting Countries (OPEC) and its allies known as OPEC+ next Thursday, as investors tune in to possible peace talks between Russia and Ukraine.
OPEC + has so far resisted calls from consuming countries The main, including the United States, to increase production. OPEC+ has been increasing production by 400,000 barrels per day each month since August, to mitigate the impact of cuts made when the Covid pandemic affected demand.
UAE Energy Minister Suhail Al Mazrouei said at an energy forum in Dubai on Tuesday that the United States must be realistic and realize that the Producers Alliance In OPEC+, it takes into account the interests of consumers.
He added that the United States should not dictate policies on others. He explained that America is an important partner for all of us and we are proud of that relationship. What we need is to look at energy goals, not dictate what needs to be done.
He stressed that “we need to understand that what we are doing is for the benefit of consumers.” “From our experience, we know what’s right, so trust us,” he said.
He considered that there are required investments and there is a need to separate politics from the availability of energy at reasonable prices. He pointed out that the region is under attack from terrorist organizations and this must stop if we are to commit to developing more resources in the future.
He believed that “energy security is a priority now, and some countries are ignoring energy affordability, which is why the OPEC + partners are trying to maintain order and bring resources to the market at a reasonable time for us.”
He added that he believes that the demand for oil will grow and that it is witnessing this growth now, but he stressed that it is difficult to predict the future volatility of the market, issues such as whether Iran will enter the market or not, and whether investments will be made or not in the sector.
He considered that it is not possible to pressure some partners outside of OPEC + and countries can choose from where to buy resources, and we cannot make decisions about the world. “We have witnessed crises and wars before, and we have remained alert and successful,” he added.
Saudi Energy Minister Prince Abdulaziz bin Salman declared at the forum that if the security of oil supplies were threatened, the global economy would suffer. He explained that energy security is disturbed by Houthi attacks.
He pointed out that the security of supplies is now a priority, while some countries ignore the issue of energy affordability. “There is an 80-year history of doing everything that enables us to be a provider of sustainable energy,” he noted.
He explained that it is not possible to pay attention to climate change without looking at energy security. He added, “We are working collectively to ensure energy security, and the Gulf countries have implemented what is required of them in this matter, but others should fulfill their commitments.”
He continued, “The reason for our success in maintaining OPEC and OPEC + is that we discuss these matters in an individual way as we focus more on the common and the good, regardless of politics.”
And he considered that “when we come to OPEC + everyone leaves politics outside the door of the building, if we did not do that we would not deal with many different countries at different times, and without OPEC + we would not be celebrating a sustainable energy market despite the current volatility, and if it would have been worst”.
The Saudi Energy Minister said that the Kingdom will have a surplus of oil production capacity of about two million barrels per day due to the increase in production and its energy mix. He explained that Russia produces about 10 million barrels per day, which constitutes about 10% of global consumption, which is a significant contribution.
He said that people focus on regional issues without looking comprehensively at the global impact, noting that the region faces multiple risks, while Saudi Arabia’s statement last week was clear about its lack of responsibility for the security of supplies.
Crude oil prices fell in morning trading, Tuesday, below $110 a barrel, in conjunction with continued closures in some Chinese cities, with the return of the outbreak of the Corona virus.
Yesterday, Monday, the Shanghai city government announced the closure of vital factories and facilities in the city, with the return of the outbreak of the Corona virus, which means a decline in demand for crude oil.
By 07:00 (GMT), the price of Brent crude futures for June delivery fell 0.72 percent, or 79 cents, to $ 108.69 a barrel.
The prices of US West Texas Intermediate crude futures for May delivery also fell 0.80 percent, or 84 cents, to $105.10 a barrel.
China is the largest importer of crude oil in the world, with a daily average of 10 million barrels per day, and the second largest consumer of it after the United States, with a daily average of 13 million barrels.