Fadel bin Saad Al-Bunainn
Changes in the global oil market proved the validity of OPEC’s expectations and its accurate reading of the global economic scenario and its expected impact on demand, which justified the decision to cut production by two million barrels per day last October. Expected oil surplus, equivalent to about 2 percent of global demand, to reduce production.
Despite the accusations leveled at the OPEC+ alliance, and attempts to politicize and demonize its decisions, the alliance has made efforts to ensure the stability of the oil market and to avert potential crises, and has played its important role in the face of emergency changes. Oil market to dedicate role, which is an active role which can be seen in both case of decrease or increase in oil supply. The main objective of OPEC is to achieve a balanced oil market.
OPEC’s role is limited to protecting the interests of not only producers, but also consumers, which makes it more effective in fostering global growth and development and the flow of investments that guarantee energy security and stability.
Strategic dealing with global market variables requires rapid intervention with proactive decisions by OPEC and its allies. Some may question its objectives under the influence of economic and energy affairs, theoretical market studies, or reports from specialized international organizations dealing with emergency price variables. However, the reality of the days always attests to the accuracy and methodology of the decisions taken and its success.
OPEC+ followed its previous decision to cut output by two million barrels per day last October, making it the target of Western criticism accusing it of politicizing oil and favoring Russia. As always, the state enjoyed the greatest share of that systematic Western attack, although the decision to cut was taken according to purely economic considerations and with the unanimity of the member states.
Despite sharp criticism of the OPEC+ decision, days have proved its effectiveness and compatibility with the requirements of global economic changes and the volume of oil demand. The slide in prices during the current month of December, below $80, did not prompt OPEC+ to take another decision to cut production at its meeting last week. whenever necessary.
To ensure the stability of the market requires a proactive step based on accurate readings of the future of the oil market in accordance with economic changes. The blurring of vision of the future may prompt conservative decisions in the face of risks, but OPEC+’s dynamism makes it more capable of reviewing its decisions when necessary, which was evident in its recent statement.
The desire of His Highness Minister of Energy, Prince Abdulaziz bin Salman, for “vigilance and caution” has become a platform for OPEC+, which was confirmed in the monthly report. The state and its allies in OPEC+ have an interest in moving quickly to counter changes affecting the markets in order to protect their interests and the global economy.
The recent movement in oil prices indicates the importance of monitoring the global economy and markets and achieving balance in the oil market, the importance of a strategic approach and accurate readings of the economy, the size of global demand and the challenges affecting it. Rising inflation, tighter monetary policies, and a “Zero COVID in China” policy are among the challenges affecting the growth of the global economy, and thus oil demand, which has forced OPEC+ to take important decisions to balance inspired to. Market.
Today, the Organization of the Petroleum Exporting Countries’ (OPEC) forecasts for the oil market have proven to be more accurate than those of the International Energy Agency, and that the OPEC+ alliance is more honest than basing its decisions on temporary political trends. Is. Those who are harmful to oil markets, producers and consumers, it is the right of the coalition and the world to think about the real accused of politicizing oil?!
The work of most international organizations, including the International Energy Agency, is not devoid of deliberate guidance and preparation of reports according to specific directions, as the US and some Western countries play a significant role in directing and politicizing these reports, even if they are a come along Beautiful economic vision. The case applies to the management of oil markets, and the role of financial institutions and investors in guiding them through future speculation in addition to US inventory data and its management mechanism, which is used to drive prices to OPEC+ countries and their losses. can be done to direct. Interests. Focusing on the interests of consumers in isolation from producers is unacceptable, and may lead to future crises and threaten global energy security, which may lead to a rethinking of hostile Western policies against oil and the OPEC+ alliance. They need to stop accusing and trying. Blame them for the global economic crises which the west was and is one of the main reasons.