July 7, 2022

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Saudi Arabia supports Russia in OPEC Plus despite US and Western sanctions

Highlights of the story

  • Saudi Arabia is naked to the United States
  • Russia cannot be separated from OPEC Plus
  • Russia joins OPEC’s new agreement

Saudi Arabia, an oil exporter, is not ready to expel Russia from the OPEC Plus (Organization of the Petroleum Exporting Countries, OPEC +) despite pressure from the United States and the West. The European Union will soon impose a complete ban on Russian oil, but even after this, Saudi Arabia will continue its alliance with Russia. Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman has said that Saudi Arabia has an agreement with OPEC Plus, which includes Russia.

Speaking to the Financial Times, Prince Abdul Aziz said the world should appreciate the values ​​of the OPEC + Alliance and not give it a political twist. He said, “Saudi Arabia is looking forward to working on an agreement with OPEC +, which includes Russia.”

OPEC + is a group of 24 oil producing countries, including 14 OPEC members and 10 non-OPEC members, including Russia. OPEC Plus was created in 2017 in an effort to better integrate oil production and stabilize global prices.

Prince Abdul Aziz’s comments on OPEC Plus sent a strong message to the United States and its NATO allies. Saudi Arabia has made it clear that it will not support the West’s attempt to isolate Russia or its oil exports.

Saudi Arabia’s relationship with the United States is deteriorating

Saudi Arabia and the United States are considered good friends, but since the inauguration of President Joe Biden, relations between the two countries have soured. Saudi Arabia’s Crown Prince Mohammed bin Salman has been the target of the assassination of Jamal Kashoghi, a journalist with the Washington Post.

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Apart from this, both Saudi Arabia and the United Arab Emirates (UAE) are angry with the US over Iran. The United States is seeking to re-enact a nuclear deal with Iran, but both the United Arab Emirates and Saudi Arabia are opposed.

Politics should be excluded from the OPEC Plus

Prince Abdul Aziz has said that politics should be excluded from the OPEC + organization. To face the dilemma around the world, do not bring politics into the midst of oil.

“We have a situation where people have to sit together, think, stop making excuses and stay out of politics,” he said.

The world is upset by the rise in petrol prices

After the Russian invasion of Ukraine, petrol and diesel prices continued to rise, causing global inflation to rise. The United States and Western nations continue to put pressure on Saudi Arabia to increase crude oil production, but Saudi Arabia has refused. Saudi Arabia says the current supply of oil is adequate.

Prince Abdul Aziz says the new OPEC + agreement is unpredictable given the uncertainty in the market. But he believes the OPEC Plus Group will increase oil production if demand increases.

He said, “Given the uncertainty that exists now, any compromise will be made very soon. But we know we have produced enough oil.

According to the OPEC + Agreement 2020, member states will increase their total oil production by 430,000 barrels per day per month. But between March and April, Russia’s production fell by about a million barrels a day. The International Energy Agency estimates that Russia’s oil production will fall by 3 million barrels a day if Western countries tighten sanctions on Russia.