Saudi Energy Min: OPEC Is Benign, Targeting Less Volatility Not Prices

Saudi Energy Minister, Prince Abdulaziz bin Salman, speaking at the World Petroleum Congressin Calgary, Canada, has stated that OPEC+ is a benign body which acts, "no different from central bank actions."

• He says OPEC is "not targeting prices," rather, "targeting less volatility" and says the group wants to be, "proactive, pre-emptive, precautious."
• States the, "main pillar for energy security is sustainable markets" and international energy markets, "need light handed regulation."
• The Minister's comments suggest that Riyadh is unlikely to step away from production cuts which have squeezed markets, spiked inflation, and threatened to drive another wedge between the US and Washington as they negotiate a transformational Middle East programme which includes infrastructure investment, enhanced security partnership, and normalisation with Israel.
• BBG reported late last week: "Riyadh’s pricing strategy is stoking global inflationary pressures, potentially forcing central banks to keep interest rates higher for longer. At the same time, the geopolitical hand of Riyadh gets stronger."
• A prolonged spike in the price of crude is also likely to have a significant impact on the 2024 US presidential election, with presidential approval closely correlated with the price of gasoline.