Page 4 - MEOG Week 21 2022
P. 4
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