Algerian President Dispels Spain’s ‘Energy Concerns’

Algeria's President Abdelmadjid Tebboune speaks during a meeting with US Secretary of State Antony Blinken on March 30, 2022, at El Mouradia Palace in Algiers. Jacquelyn Martin, AP
Algeria's President Abdelmadjid Tebboune speaks during a meeting with US Secretary of State Antony Blinken on March 30, 2022, at El Mouradia Palace in Algiers. Jacquelyn Martin, AP
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Algerian President Dispels Spain’s ‘Energy Concerns’

Algeria's President Abdelmadjid Tebboune speaks during a meeting with US Secretary of State Antony Blinken on March 30, 2022, at El Mouradia Palace in Algiers. Jacquelyn Martin, AP
Algeria's President Abdelmadjid Tebboune speaks during a meeting with US Secretary of State Antony Blinken on March 30, 2022, at El Mouradia Palace in Algiers. Jacquelyn Martin, AP

Algerian President Abdelmadjid Tebboune on Saturday said his country will not abandon its commitment to supply Spain with gas despite a diplomatic row with the European country over Western Sahara.

"We assure the Spanish friends, the Spanish people that Algeria will never abandon its commitment to supply Spain with gas under any circumstances," Tebboune said in an interview aired on state television late on Saturday.

Algeria informed its European economic partner last month that it was raising the price of gas. Against the backdrop of the ongoing war in Ukraine, Algeria approved Italy's request for increased liquefied gas supplies to compensate for the Russian gas.

Madrid expressed concerns over the impact of this decision on its share of gas, especially that Algeria clearly stated that it intends to review its partnership with Spain in the energy sector.

Algeria also summoned its ambassador to Madrid to show its discontent at the “sharp turn” taken by Spain in supporting Morocco's autonomy plan for Western Sahara. This stance was expressed by Prime Minister Pedro Sánchez.

“We demand the implementation of the international law for the return to normal in our relations with Spain,” Tebboune added.

He said that Spain shouldn’t forget its historical responsibility.

In another context, the president expressed intention to carry out partial amendments to the government in the coming days, based on the results of each sector. Yet, he did not reveal the ministers’ names.

Tebboune added that the amendment would take into consideration the ministers’ abidance by the instructions given by the president during cabinet meetings.



Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)
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Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)

Saudi Arabia has long followed a clear and transparent approach to preserving stability in global energy markets. Historically, it has consistently adhered to all decisions issued by the OPEC+ alliance and played a leading role alongside other producers to ensure compliance and promote the collective good.

Recently, the Kingdom briefly increased production volumes. However, the additional output was neither marketed domestically nor exported abroad. Instead, it was directed as a precautionary measure to strengthen strategic reserves, improve supply flows between the country’s eastern and western regions, and rebalance stocks held in overseas storage facilities.

Asharq Al-Awsat reached out to energy specialists to understand the significance of this move for energy security. Experts explained that building strategic reserves allows Saudi Arabia to respond swiftly to customer needs in the event of political crises, regional wars, adverse weather, or other unforeseen disruptions.

Fouad Al-Zayer, former head of data services at OPEC and an energy expert, said the Kingdom maintains millions of barrels in storage both inside and outside its borders. These reserves serve as a buffer during emergencies, enabling the country to compensate for supply shortfalls within a short timeframe. He emphasized that this stored crude is strategically critical in the face of geopolitical tensions and conflicts.

According to Al-Zayer, Saudi Arabia relies on an extraordinary reserve capacity unmatched by any other producer. The country currently produces more than 9 million barrels per day, with the capability to pump even higher volumes if needed. He noted that Saudi reserves alone account for 3 million barrels per day out of roughly 5 million barrels in global spare capacity, underscoring Riyadh’s central role in stabilizing markets and upholding its commitments under OPEC+ agreements.

He added that Saudi Arabia also hosts the International Energy Forum, which works to improve data quality and transparency in the sector. In June, the Kingdom’s output reached about 9 million barrels per day, with the modest increase attributed to logistical considerations. Al-Zayer stressed that it is common for producers to temporarily boost production to support maintenance operations or replenish storage, without impacting the broader market, since these barrels are not immediately traded.

He reiterated that Saudi Arabia has always honored OPEC+ production targets and has played a pivotal role in encouraging other members to meet their quotas.

Meanwhile, Dr. Mohammed Al-Sabban, former senior adviser to the Saudi Minister of Petroleum, explained that the Kingdom has consistently proven itself a reliable and secure supplier to global energy markets. He noted that Saudi Arabia’s recent statement clarified the reasons behind the June production uptick, emphasizing that the additional oil was neither destined for local consumption nor for export but was solely intended to refill domestic and foreign storage. He said such measures do not represent any breach of commitments, unlike the practices of some other countries.

Al-Sabban pointed out that Saudi Arabia has often gone beyond required cuts to help stabilize markets. Even the recent production increases, he said, fall within the scope of voluntary adjustments agreed upon by OPEC+ members. He noted that in July, Saudi Arabia raised production in line with credible studies indicating the market could absorb these volumes without disruption.