Riyadh supports OPEC+ agreement that includes Moscow

By Al Mayadeen English
Source: Agencies
23 May 2022 08:55

Saudi Arabia will not be appeasing the US' demands.

Oil production has become a critical factor in world stability

As Europe grapples with an energy crisis after the Ukraine war, Saudi Arabia is hoping that an OPEC+ deal will include Russia, according to Riyadh's energy minister Abdulaziz bin Salman.

On Sunday, bin Salman divulged to the Financial Times that Riyadh is hoping "to work out an agreement with OPEC+... which includes Russia," insisting the "world should appreciate the value" of oil producers' alliance.

Although the minister said it's too early to predict the details of the agreement, OPEC+ will increase production "if the demand is there."

The lack of global refining capacity and taxes are responsible for the rising prices, according to the minister, who recommends that governments need to encourage the industry to invest more in hydrocarbons.

"This situation needs people to sit together, focus, take out the masquerade and the so-called political correctness," Abdulaziz bin Salman said, pointing out that "for the last three years, the whole world lost around 4mn barrels of refining capacity, 2.7mn of them just from the beginning of Covid."

Earlier this May, the OPEC+ alliance decided to stick to the oil output cut deal and increase production only by 432,000 barrels a day in June.

According to Secretary-General of the OPEC alliance Mohammad Barkindo, it isn't possible for OPEC+ members to replace Russian oil exports of more than 7 million barrels a day.

Western media attributes Saudi's refusal to increase oil production to deteriorating relations between Riyadh and Washington.