Why does the "Oil Kingdom" lead the discussion on high oil prices?
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The outside world generally believes that oil prices in the international market are high, and that oil-consuming countries are worried about this, and Saudi Arabia, as one of the world’s leading oil producers, has won huge oil dollar wealth in rising oil prices. Exploring high oil prices?
Analysts pointed out that Saudi Arabia actively plans this meeting, both wishing to show its consistent position to maintain the stability of the international crude oil market, and also hopes to have a certain amount of discourse in the debate on the causes of high oil prices and reduce the pressure on them. In addition, Saudi Arabia also hopes to organize a meeting to discuss ways to restore oil prices to normal levels, which in the long run is also in the interest of oil producers such as Saudi Arabia.
First of all, as the world’s largest crude oil exporter, Saudi Arabia’s hosting of this international oil conference can demonstrate its commitment to maintaining the stability of the international crude oil market and the world’s energy security.
Since the benchmark crude oil futures price in the New York market exceeded the US$100 per barrel mark for the first time at the beginning of the year, oil prices in the New York market have continued to rise in recent months and have recently approached US$140 per barrel. Some oil consuming countries believe that the Organization of Petroleum Exporting Countries (OPEC), led by Saudi Arabia, refused to increase production, which is an important factor in pushing up oil prices. On May 20, the U.S. House of Representatives even passed a bill authorizing the U.S. government to sue OPEC for manipulating oil prices.
In response to pressure from all sides, Saudi Arabia has taken various actions in the past few months to demonstrate its determination to maintain the stability of the international crude oil market. Naimi, Minister of Petroleum and Mineral Resources of Saudi Arabia, has repeatedly stressed that Saudi Arabia hopes to maintain the stability of the international crude oil market and does not want to see soaring oil prices. In addition, in the past month or so, while President Bush and UN Secretary-General Ban Ki-moon had visited Saudi Arabia, Saudi Arabia announced that it will increase its daily output of crude oil by 300,000 barrels and 200,000 barrels respectively. According to reports, after the implementation of Saudi’s new production increase plan in July this year, its daily output of crude oil will reach 9.7 million barrels, the highest level since August 1981.
Secondly, in the process of soaring oil prices, various parties have conducted heated debates on the causes of high oil prices. Saudi Arabia hopes to hold the meeting to discuss the speculative speculation in the international crude oil futures market so as to grasp certain international public opinion initiative.
As for the soaring oil price, some people believe that supply and demand are tight, but Saudi Arabia and other OPEC members emphasized that the devaluation of the US dollar, market speculation, and geopolitical tensions are the culprits. At present, there is sufficient supply of crude oil in the international market. The Saudi English newspaper “Arab News†wrote a few days ago that the current International Petroleum Conference will focus on the role of market speculation in the continued surge in oil prices.
Third, Saudi Arabia also hopes that by holding this meeting, it will promote the dialogue between oil-producing countries and consumer countries, so as to push the parties to work together to meet the challenges posed by high oil prices.
For oil-producing countries such as Saudi Arabia, the current high oil prices and the huge oil dollar wealth it brings are not all good things. Under the background of a significant slowdown in the economic growth rate of major economies in the United States, the euro zone, and Japan, high oil prices are posing new challenges to the world economy. If problems arise in the world economy, oil producers such as Saudi Arabia will find it hard to stay afloat. .
More importantly, the increasingly "crazy" oil prices will surely curb oil consumption and push countries to accelerate the development of alternative energy sources. In the long run, this will bring a serious blow to oil-producing countries.
From the perspective of Saudi Arabia and other oil-producing countries themselves, the wealth of petroleum dollars has been surging, which has also pushed up the inflation rate in these countries, making the macroeconomic situation of these countries not optimistic. In April of this year, Saudi Arabia’s inflation rate reached 10.5%, setting a new high in 27 years. In addition, the soaring oil prices have also pushed up the prices of food and other raw materials, which has also adversely affected the economies of oil-producing countries such as Saudi Arabia.
Finally, from a geopolitical point of view, Saudi Arabia, as one of the Middle East’s traditional regional powers, has become more powerful in recent years as oil prices have soared. It passed the third OPEC summit and the Jeddah International Petroleum Conference held in November last year. The series of actions will help further expand the Saudi influence in the region and the international community.
Some analysts believe that although Saudi Arabia is doing its utmost to ensure the success of this meeting, British Prime Minister Gordon Brown and other international political leaders will actively participate in the meeting. However, after all, this meeting is of a dialogue nature. The repentant component is obviously more than pragmatic, and its high oil price Impact remains to be seen. However, some people believe that, in the context of rising oil prices and a threat to the global economy, oil-producing and consumer countries have stepped up their communication through this meeting, and they have shown that their determination to join hands to maintain the stability of the international crude oil market is inherently positive. significance.