His Royal Highness Prince Abdulaziz bin Salman, the Saudi Minister of Energy, affirmed that the OPEC+ alliance has played a pivotal and decisive role over the past years in curbing sharp fluctuations in global oil markets and keeping them at very limited levels, despite the geopolitical storms and economic pressures that have swept through the global economy.
The Minister of Energy made these remarks during his active participation in the fifth Kuwait Oil and Gas Conference and Exhibition, where he highlighted the complexities of the current energy landscape. Explaining his stance on media statements, he said, "For two years, I personally haven't uttered a single word in the public sphere about my vision for the oil market, simply because I believe the market is now governed by numerous and interconnected factors that require extreme caution in handling.".
Factors beyond the control of producers
In his analysis of the current situation, Prince Abdulaziz bin Salman pointed out that the current influences on price trends and supply and demand are not necessarily linked to the decisions of OPEC or the OPEC+ alliance, nor even to traditional market fundamentals alone. He explained that the main drivers now include complex geopolitical considerations, major economic issues such as global inflation rates and central bank policies, as well as international trade and other external factors.
A historical record of stability
The energy minister cited the alliance's historic performance, saying, "When have we ever seen a more stable and less volatile market than in the past six and a half years? This is despite all the major challenges and events that the markets have faced." This timeframe refers to the period following the strengthening of cooperation between OPEC member countries and independent producers, a collaboration that helped absorb major shocks, most notably the repercussions of the COVID-19 pandemic, which decimated global demand, and the political tensions in Eastern Europe.
Priority is sustainable stability
The minister concluded by emphasizing the alliance's strategic vision, stating, "Our core and fundamental interest in OPEC+ is maintaining sustainable stability in the oil markets; this is our most profound and important mission." He added that this stability is the foundation that ensures the flow of necessary investments to the energy sector, ultimately leading to the desired outcomes for both producers and consumers, and protecting the global economy from severe energy shocks.
