Page 5 - AsianOil Week 49 2022

AsianOil COMMENTARY AsianOil

cooperation agreement last year, seen as a China-Arab States Summit and the China-GCC
roadmap to potentially massive investments Summit.
worth hundreds of billions of dollars. Progress During his stay in Saudi Arabia, Xi also held
on realising any of the investments, however, is bilateral meetings with nearly 20 Arab leaders.
slow. As anger grew in Iran over the outcome of
They issued a joint statement, which con- Xi’s visit, Iranian newspapers hit out at China.
tained several clauses that directly dealt with Ham-Mihan headlined an article, “China’s Turn-
Iranian affairs, its nuclear programme, and its around on Iran”.
regional activities. The daily Aftab was no less scathing about
The statement signed by Xi and his GCC the Chinese. It published images of protesters
counterparts also referred to ensuring the in China, asking "Did the Chinese government
peaceful and civilian nature of the Iranian hear the voice of the protesters?"
nuclear programme and called on Tehran to Reformist Etemad on December 11 asked,
fully cooperate with the International Atomic “What is China’s plan for the Middle East?”
Energy Agency (IAEA). On December 11, Later on December 11, Iran’s National Secu-
Saudi Arabia’s top diplomat remarked that “all rity Committee said “China's interference in
bets are off” if Iran “gets an operational nuclear Iran's internal affairs conflicts with good inter-
weapon”. national cooperation.”
China and the GCC member states also in the China’s government-controlled Global
statement referred to the need for dialogue on Times on December 12 declared that Xi’s visit to
Iran’s “destabilising regional activities” and “sup- Saudi Arabia opened a new chapter of relations
port for terrorist and sectarian groups and illegal between the Arabs and the Chinese.
armed organisations”. Chinese media were generally very upbeat
Iranian foreign ministry spokesman Nasser about the new relations between the GCC and
Kanani registered “surprise” at how the state- Beijing, predicting the Arabs and Chinese would
ment included the Iran-related clauses. boost their cooperation in multiple fields over
Xi’s visit was partly arranged for the first the next few months and years. ™

GLOBAL

Russian oil cap but OPEC+

keeps to its policy

GLOBAL LAST week, the focus was on falls in OPEC oil to cut output by 2mn barrels per day (bpd), about
output following the steps taken by the cartel to 2% of world demand, from November until the
OPEC+ has not meet pledged cuts throughout the market. A end of 2023. There were accusations from Wash-
responded to the week later, the situation is not materially differ- ington that the group and, specifically, one of its
EU+G7 cap on Russian ent but there have been subtle variations. leaders, Saudi Arabia, was siding with Russia in
oil prices. This week’s developments include the Group spite of Moscow’s war in Ukraine.
of Seven (G7) nations setting a price cap on Rus- OPEC+ argued it had cut output because
sian oil. of a weaker economic outlook. Oil prices have
The G7 nations and Australia agreed a $60 declined since October due to slower Chinese
per barrel price cap on Russian seaborne crude and global growth and higher interest rates,
oil in a move to deprive President Vladimir Putin prompting speculation the group could cut out-
of revenue while still keeping Russian oil flowing put again.
to global markets. Moscow said it would not sell Kuwait’s oil minister: OPEC+ decisions based
its oil under the cap and was analysing how to on oil market data and ensure market stability
respond. OPEC+’s decisions are based on oil market
Many analysts and OPEC ministers have said data and ensure the market’s stability, Kuwait’s
the price cap is confusing and probably ineffi- oil ministry said in a statement on state news
cient, as Moscow has been selling most of its oil agency KUNA, following a meeting where the
to countries like China and India, which have group decided to continue its existing policy. The
refused to condemn the war in Ukraine. impact of slow global economic growth, soaring
Then, at their latest meeting – on December inflation and high interest rates on oil demand
4 – OPEC+ agreed to stick to its oil output targets are a cause for “continuous caution”, Oil Minister
as the oil markets struggle to assess the impact of Bader al Mulla said.
a slowing Chinese economy on demand and the Following Sunday’s decision the policy has
G7 price cap on Russian oil on supply. remained unchanged; OPEC’s ministers will next
OPEC+ had angered the United States and meet on February 1 for a monitoring committee
other Western nations in October when it agreed while a full meeting is scheduled for June 3-4. ™

Week 49 13•December•2022 www. NEWSBASE .com P5