Jubeir: Saudi Arabia Does Not Politicize Oil

Saudi Minister of State for Foreign Affairs Adel al-Jubeir. EPA
Saudi Minister of State for Foreign Affairs Adel al-Jubeir. EPA
TT

Jubeir: Saudi Arabia Does Not Politicize Oil

Saudi Minister of State for Foreign Affairs Adel al-Jubeir. EPA
Saudi Minister of State for Foreign Affairs Adel al-Jubeir. EPA

Minister of State for Foreign Affairs Adel al-Jubeir has said Saudi Arabia does not politicize oil and the shortage is not related to the fundamentals of crude oil supply and demand.

"Oil is not a weapon," al-Jubeir told Fox News. "It's not a fighter plane. It's not a tank. You can't shoot it. You can't do anything with it. We look at oil as a commodity and we look at oil as important to the global economy in which we have a huge stake.”

“The idea that Saudi Arabia would do this to harm the US or to be in any way politically involved is absolutely not correct at all,” he added.

The 13 members of the Organization of the Petroleum Exporting Countries (OPEC) and 11 of its allies led by Russia, known as OPEC+, agreed on Wednesday to lower their production by two million barrels per day.

Saudi Arabia said the reduction was necessary to respond to the West's interest rate hike and the weak global economy.

"With due respect, the reason you have high prices in the United States is because you have a refining shortage that has been in existence for more than 20 years," Jubeir told Fox News. "You haven't built refineries in decades."

Al-Jubeir ultimately asserted the Kingdom is "committed to ensuring stability in the oil markets to the benefit of consumers and producers."



Lebanon’s Struggling Economy Slides Toward Full Recession

The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)
The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)
TT

Lebanon’s Struggling Economy Slides Toward Full Recession

The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)
The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)

The ongoing Israeli war on Lebanon has led to significant economic losses estimated between $10 billion and $20 billion.

This range reflects the difficulty in accurately assessing the damage amid Israel’s ongoing military operations, including airstrikes and ground attacks.

The destruction of homes, infrastructure, and farmland has contributed to a state of uncertainty, along with an unprecedented wave of displacement affecting many families.

Experts agree that reliable economic data is hard to obtain while the conflict continues.

Reports from the Ministry of Health and international organizations said nearly 3,000 people have been killed and around 15,000 injured, mostly civilians.

Additionally, about 1.4 million people have been displaced from their homes, representing roughly a quarter of Lebanon’s population.

Growing economic crisis ahead

The war came at a time when Lebanon’s economy was already struggling after five years of crisis.

According to Mohammad Choucair, head of the Economic Bodies Association, the situation is worsening rapidly, threatening serious economic and social consequences.

Current estimates suggest that direct losses from the conflict could reach between $10 billion and $12 billion, impacting various sectors.

As the war continues, key sectors like tourism, agriculture, and trade are experiencing a sharp decline in business activity.

Many small and medium-sized enterprises are being forced to close or suspend operations due to direct damage from attacks, reduced consumer demand, and disruptions in trade and supply chains caused by the influx of displaced people.

International financial institutions are warning that the ongoing Israeli attacks could continue for several more months, possibly lasting until mid-2025.

The Institute of International Finance (IIF) forecasts a 7% contraction in Lebanon’s GDP by the end of this year, followed by a 10% decline next year.

This would bring the total economic decline to nearly 60% from the peak GDP of around $53 billion recorded at the end of 2018.