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Saudi energy minister says OPEC will leave politics out of oil decisions

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Saudi Energy Minister Prince Abdulaziz bin Salman Bin Abdulaziz Al Saud addresses the UN Climate Change Conference in Glasgow, Scotland (UK), November 10, 2021.

Yves Herman | Reuters

Saudi Arabia’s Energy Minister said Tuesday that OPEC+ will not allow politics to influence its decisions in favour of “common good”, stabilizing energy costs.

Governments and international organizations around the world have imposed punitive sanctions and severed economic ties with Russia after its invasion of Ukraine, but OPEC — the intergovernmental organization of 13 oil exporting countries — does not appear willing to take action against Russia, a key partner in the wider OPEC+ alliance and itself a major exporter of oil.

Speaking to CNBC on Tuesday, Saudi Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz Al Saud said the organization’s very existence was dependent on a separation of its mission to stabilize oil prices from other geopolitical factors, even in the event of a widely-condemned invasion.

Saudi Arabia and UAE supported a U.N. General Assembly resolution urging Russia not to invade and pull all its troops out of Syria earlier in the month. Prince Abdulaziz stated that there are other venues through which the Kingdom can voice concerns about Russia’s actions. This is consistent with global responses.

“When it comes to OPEC+ — I would take that privilege of saying I’ve been at it for 35 years, and I know how we managed to compartmentalize our political differences from what is for the common good of all of us,” Prince Abdulaziz told CNBC’s Hadley Gamble at the World Government Summit in Dubai on Tuesday.

“That culture seeped in OPEC+. So when we enter that OPEC meeting space or OPEC Building, everyone leaves his politics at that door. And that culture has been with me.”

The energy minister pointed out that OPEC+ was created after production cut agreements were made with non-OPEC nations, including Russia. Throughout its history, OPEC+ had worked with various countries in conflict with or engaged in acts of aggression. This included Iraq and Iran.

“The only reason we’ve managed to retain OPEC+, is that we talk about these matters, these topics in an entirely separate type of approach which allows us to be much more focused upon the common good without regard for the politics,” he said.

Suhail Al Mazrouei (UAE Energy Minister) echoed Prince Abdulaziz’s remarks. He also noted that while its constituent members are at war, the organisation has continued to function without taking sides. He said that their only goal is to “stabilize the market.”

He stated that “our aim is to calm market and trying to get as many volumes as possible. If we ask anyone to leave then we raise the prices.”

“Then it is contrary to what consumers want. What consumers cry for in many countries across the globe who are unable probably afford where prices can go.”

Al Mazrouei stated that countries can unilaterally reject Russian oil but the organisation would have to impose its values on members.

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