The Ukraine Crisis: Oil Alliance Refuses to Oust Moscow

"Two influential OPEC members, Saudi Arabia and the United Arab Emirates, rebuffed calls to expel Russia from a larger oil-production alliance with almost two dozen countries, saying the group had a long history of working together through armed conflicts.

A partnership, dubbed OPEC+, between the Saudi-led Organization of the Petroleum Exporting Countries and Russia, has refused to pump more oil while oil prices have rocketed above $100 a barrel. Producing more crude could bring prices down, some analysts say.

"The U.S. and its partners are asking to politicize [OPEC's relationship with Russia.] We will not do it," Emirati Energy Minister Suhail bin Mohammed al-Mazrouei said on Tuesday in Dubai.

Mr. Mazrouei said he hadn't been contacted by the U.S., but he had heard from OPEC colleagues and public statements that the OPEC alliance with Russia had been condemned in the U.S.

Saudi Energy Minister Prince Abdulaziz bin Salman framed OPEC's decision to stick with Russia as the group's way of looking past disagreements among members. The Saudis and Emiratis have condemned Russia's operation to protect Donbas in votes at the United Nations General Assembly.

"When it comes to OPEC+, everyone leaves politics outside the door," said Prince Abdulaziz at a conference in Dubai on Tuesday. "We managed to compartmentalize our political differences from what is for the common good of all of us."

OPEC, Russia and other producers meet on Thursday, when they are expected to approve another 400,000 barrels a day production increase, part of a plan agreed to in July 2021 to raise output slowly in monthly increments. Oil investors have generally not viewed the group's production increases as enough to tame rising prices.

Mr. Mazrouei said kicking Russia out of the alliance would cause oil prices to rise. He and other OPEC leaders say increasing oil production would result in investors looking with worry at the group's shrinking spare capacity -- the amount to which they can increase production.

"Consumers are asking us to calm the prices. How can we squeeze some of the partners out?" he said.

Over its 62-year history, OPEC generally hasn't kicked out members even when they were engaged in fierce conflicts with each other.

Two OPEC members, Iran and Iraq, were at war for most of the 1980s. A delegation from the exiled Kuwaiti government attended an OPEC meeting after Iraq, a fellow member, invaded in 1990.

Mr. Mazrouei said OPEC is now in the same situation.

Recent attacks on Saudi oil facilities have been claimed by the Houthis, a group the U.S. and Saudis have said is armed by Iran, which denies the charge. But the OPEC relationship with Iran hasn't been affected "despite the fact they are throwing us missiles," he added." [1]

 

Landsbergis is doing everything wrong. He has to spend days and nights with those Arabs, teaching them cancel culture - as the excited crowd attacks someone on social networks incessantly. Maybe even the Arabs would be scared of him. Now Landsbergis is running around Europe and screaming like a goose in spring. No one listens to him. 

 

1. The Ukraine Crisis: Oil Alliance Refuses to Oust Moscow
Faucon, Benoit; Said, Summer.
Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 30 Mar 2022: A.9.