Stability of Energy Markets
In years past, the world oil markets experienced chaos in production, a matter which has been reflected on the prices and several countries have been affected by that chaos because of the economic tensions which resulted in a sharp drop in prices and the producing countries, as well as the consuming ones, inside and outside the Organization of the Petroleum Exporting Countries (OPEC) have been affected.
There's no doubt that the new scene of the global oil market, through which the Kingdom of Saudi Arabia has succeeded in bringing the OPEC back to the forefront thanks to Saudi efforts led by Energy Minister Khalid Al-Faleh, has restored confidence in the oil markets and strengthened supply security, especially after the landmark agreement that stabilized the global oil markets.
The latest geopolitical developments in the region come after the U.S declaration of a package of sanctions against Iran after the U.S formal pulling out of the nuclear deal with Iran. Amongst these sanctions that will enter into force in next November is the ban on the import of oil, a matter which may cause disruption of energy supplies, especially with the rapid events in Libya.
Accordingly, the phone call between Custodian of the Two Holy Mosques, King Salman bin Abdulaziz (God bless him), and U.S President, Donald Trump obtained a great importance in reassuring the oil markets and efforts to maintain their stability, ensure the growth of the world economy and the efforts by the producing countries to compensate for any potential shortage in the oil supplies.
The Kingdom's economic capabilities are always highlighted tin multiple situations. One of them probably could be the present capacity to compensate for the shortage in the oil supplies. Saudi Aramco announced, earlier last week, that it has an excess production capacity of two-million barrels per day and can meet the additional demand for oil in the event of any failure in the oil supplies ".
Riyadh has now become a factory for political and economic decision, in cooperation with the G20 countries to ensure the stability of the energy markets.