Saudi Energy Minister Prince Abdulaziz bin Salman said that OPEC and OPEC+ seek to balance oil markets to ensure energy security.
The consensus is the main principle of OPEC+, and without that, market stability would not have been possible amid the current conditions, economic volatility, and uncertainty, Prince Abdulaziz said in his speech during the 60th anniversary of OPEC in Baghdad.
The Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ alliance succeeded in stabilizing oil prices, which benefited not only the member states but the oil industry in general, said the minister.
Organizing
The minister noted that OPEC+ decisions last week were taken in agreement among all members, and it would enable both OPEC and OPEC+ to organize their internal affairs.
The newly developed OPEC+ mechanisms will enable the organizations to maintain their active role and ensure justice for all members.
Prince Abdulaziz noted that the agreement and its mechanisms would help countries invest and reassure others who want to invest with them.
Voluntary reduction
Earlier this month, the OPEC announced that the OPEC + group decided at its meeting on Sunday to adjust the bloc’s production level to 40.4 million barrels per day, starting from January 2024 and for one year.
Saudi Arabia also announced it would drop its output to nine million barrels per day (bpd) in July from around ten million bpd in May, the most significant reduction in years.
Russia and Iraq also announced additional reductions.
Economic source
Iraq’s Prime Minister Mohammed Shia al-Sudani asserted that oil remains an important energy source, adding that OPEC’s responsibility is not limited to exporting oil and includes organizing the prices.
Sudani said that the member states should face global challenges, adding that introducing natural gas to the energy market represents additional responsibilities.
He said Iraq relies on oil as the primary economic source, adding that investment in gas will reduce wasting gas, which costs the country about $4 billion annually.
The PM announced that Iraq’s priorities are providing facilities for the private sector and global companies to enter the market.
Price stability
OPEC Sec-Gen Haitham al-Ghais asserted that the organization would maintain its role in establishing global market stability.
Ghais announced at the event that the “historic” agreement ensured the sovereign right of the five members, adding that the organization now includes 13 oil-producing states, all working based on the same principles that have underpinned the organization since its inception.
Safe environment
Iraqi economic expert Abdulrahman al-Mashhadani believes Iraq has established a safe environment to attract investments.
Mashhadani told Asharq Al-Awsat that Iraq established and activated many laws that ensure a suitable environment for investment, including maintaining security and an appropriate political climate.
He asserted that the most important aspect is the regional country’s conviction of the importance of investing in Iraq, which can be seen in the international and Arab interests in the country.
The expert believes that political revenues are much more important than economic revenues because it indicates a belief that Iraq’s stability ensures regional stability.
Asked if the government program meets such aspirations, Mashhadani described it as a “positive step” towards attracting investments, but he expects it to be amended in the coming year.
