Saudi Arabia is exerting strenuous efforts to achieve the stability of the oil sector in the global economy, experts told Asharq Al-Awsat.
Custodian of the Two Holy Mosques King Salman bin Abdulaziz stressed, during a telephone call with US President Joe Biden on Wednesday, the importance of maintaining the balance and stability of oil markets and the role of the OPEC+ agreement in this regard.
The experts noted that Saudi Arabia has strengthened the collective decision-making within the OPEC+ alliance, in order to increase production if required and to address the main problems with a long-term vision, emphasizing the Kingdom’s role as a global energy safety valve.
Dr. Mohammad Al-Sabban, former senior advisor to the Saudi Minister of Oil, told Asharq Al-Awsat that King Salman’s statements reaffirmed Saudi efforts to maintain balance and stability in oil markets, noting that the OPEC+ agreement was historic and relied on the collective decision of the alliance members.
Al-Sabban indicated that in the event of a shortage in market supplies, OPEC+ would perform its role with the required long-term response, because short and intermittent solutions would not meet the objective to face the rise in prices.
Energy expert Mohammed al-Dhabi told Asharq Al-Awsat that the Kingdom assumed a historical and strategic role in maintaining the balance of energy markets and was aware of the importance of the price stability on the global economy and on producing and importing countries.
Saudi Arabia has on many occasions proven that it is the most important influencer in the oil markets, he underlined. In addition to its production capabilities and huge surpluses, the Kingdom has the ability to lead agreements that ensure the safety of markets.
According to al-Dhabi, these capabilities have given the oil markets a strategic depth as the Kingdom has a production surplus of more than 3 million barrels per day and is able to pump it to the markets in the event of a supply shortfall for any reason. It can also reduce production in large quantities in case of a supply glut, without affecting its economy.
The expert also stated that during the Covid-19 crisis and its severe impact on the global economy, Saudi Arabia confirmed its role as a world energy safety valve.
