Page 4 - MEOG Week 21 2022
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MEOG                                          COMMENTARY                                               MEOG




       Saudi Arabia’s role in a





       shifting energy landscape






       Political posturing brings into sharp focus the shape of
       Saudi Arabia’s past, present and future relationships.




        SAUDI ARABIA     REPORTS emerged this week that Saudi Ara-  global upheaval, Saudi Arabia is well-positioned
                         bian Crown Prince Mohammed bin Salman  to be among one of the countries to benefit most.
                         (MbS) is planning a tour of countries in and   State-backed oil firm Saudi Aramco has con-  The world is
       WHAT:             around the Levant as Riyadh assumes an expan-  tinued to establish partnerships and develop
       Oil prices have   sionist role.                        facilities in markets that will guarantee purchases   running out of
       emboldened Saudi    The tour – reported to include Cyprus, Egypt,  of Saudi crude and nowhere is this more visible
       Arabia to assume a more   Greece, Jordan and Turkey – comes as the King-  than in Asia, which already accounts for around  energy capacity
       expansionist role while   dom spots an opportunity to move on to the  two thirds of its oil sales, and the company holds
       the US continues to seek   front foot. Already the Gulf’s largest economy,  stakes in major refining and petrochemicals pro-  at all levels.
       better ties.      it has been emboldened by higher oil prices and  jects in China, Japan, Malaysia and South Korea,   Prince Abdulaziz bin
                         the pleas of European consumer nations for  with India appearing likely to follow.  Salman
       WHY:              Saudi and its neighbours to help displace Russian   During the administration of President   Energy Minister
       The Biden         energy supplies.                     Donald Trump, relations between Riyadh and   Saudi Arabia
       administration’s    Meanwhile, news of the visits was quickly  Washington were bolstered – Saudi Arabia was
       approach towards Riyadh   followed by reports that the US is mediating on  the first country he visited after his inauguration.
       has done little to win   the transfer of two Red Sea islands from Israel  However, since Joe Biden assumed office in early
       favour from the long-time   to Saudi Arabia as part of an effort to bring a  2021, ties have deteriorated significantly, with
       ally.             normalisation of relations between Riyadh and  Riyadh interpreting his conduct towards Saudi
                         Jerusalem.                           and his views on the war on Yemen and poten-
       WHAT NEXT:                                             tial state involvement in the murder of journalist
       With the latest attempt   Global outlook               Jamal Khashoggi as less than friendly.
       focusing on reassigning   The upcoming tour will mark the first official   It is indicative of just how far the relation-
       two Red Sea islands   visit outside the Gulf since MbS attended the  ship has plummeted that Saudi – and the UAE
       from Israel to Saudi,   G20 summit in 2019 in Japan. Since then, there  – ignored repeated calls by the US to increase
       Washington is looking   has been a major oil price crunch, the corona-  oil production in order to reduce global prices.
       to leverage its role as   virus (COVID-19) pandemic, a change of US  Instead, Riyadh and its Gulf allies continue to
       a mediator to ease   president and the outbreak of war in Ukraine.  stick with the OPEC+ deal on output restraint
       tensions.         While these factors have served to bring about  deal in league with Russia and other significant































       P4                                       www. NEWSBASE .com                           Week 21   25•May•2022
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