Emirates and Saudi Arabia reject 'politicising' the energy market
The oil market cannot be politicised. This is the conclusion reached by the United Arab Emirates and Saudi Arabia at the 2022 Governance Summit held in Dubai under the theme "shaping the governments of the future".
Crown Prince Abdulaziz bin Salman, together with his Saudi counterpart, Suhai Al Mazrouei, have thus shown their rejection of what they call the "politicisation" of OPEC+. With this stance, the two Arab countries are trying to defend the perseverance of market price stability while asking whether the world is really ready for a future that goes beyond oil.
The Saudi Energy Minister stressed that the GCC countries have fulfilled their obligations to try to secure supply and declared that "the mission of OPEC+ is to stabilise the market. If we ask any of the members to leave, we will raise prices, which is against what consumers want," he said.
Russia's invasion of Ukraine has both directly and indirectly affected the rise in oil and gas prices. Russia, a member of OPEC+, was at a crossroads in this respect since, following the United States' veto of Russian oil imports and the latter's call for a "boycott" of Moscow with respect to this commodity, the main international powers have begun to look for other oil supply routes.
However, in the case of Europe, the European Union's strong dependence on oil and gas makes it difficult for EU countries to look for alternatives in the short term.
It is for this reason that the Emirate, along with Saudi Arabia, has advocated the non-politicisation of the oil market so that it is not affected by rising prices or supply shortages.
Prince Abdulaziz bin Salman recalled that Russia produces "about 10 million barrels per day, which is about 10% of world consumption", which represents "a significant contribution".
The Saudi Energy Minister stressed that "the countries of the Gulf Cooperation Council have implemented what is required of them" and reiterated the need for the rest of the countries "to fulfil their obligations". Furthermore, he indicated that "people focus on regional problems without looking comprehensively at the global impact".
He explained that "there is no doubt that if security of supply is affected, it will affect the economy and welfare, but it will also affect the global economy in a more fundamental way".
He also emphasised the importance of the OPEC+ commitment and affirmed that if political issues are not left behind, "we cannot deal or maintain relations with different countries at other times".
In the same vein, the Minister of Energy of the United Arab Emirates, Suhail Al Mazroue, indicated that "more investment is required", while at the same time he pointed out the importance of "separating politics from the availability of energy at reasonable prices", according to Reuters. In this respect, he affirmed that the transition to renewable energy requires "investments especially in the oil and gas sector (...) it is not possible to face global energy challenges without developing resources".
He also defended the Gulf countries' desire to maintain their independence from US dictates. Al Mazroue denounced that "we do not want dictates from the United States on what we should do, we are experts in our field and what we do is for the benefit of consumers".
Finally, the minister stressed that energy security is now "a priority", after emphasising that "OPEC+ partners are trying to maintain the system and price stability".