“OPEC”: Saudi Arabia’s initiatives enhance international cooperation to effectively address the challenge of climate change


Crude oil prices rose at the end of the week’s trading, while they stabilized on a weekly basis after receiving good support from the decline in US oil inventories, and the recovery of Asian demand, especially in China and India.
In this context, the Organization of the Petroleum Exporting Countries praised the Saudi leadership and its significant and globally influential role in advancing sustainable development initiatives, innovation and combating climate change.
A recent report by the organization said, “The wise and widely accepted models put forward by Saudi Arabia, including the circular carbon economy (CCE) and green initiatives, can promote cooperation and dialogue and effectively address the urgent challenge of climate change.”
The report indicated that under the presidency of Saudi Arabia in 2020, the Group of Twenty adopted – the framework of the CCE and “4Rs” – with the aim of reducing, reusing, recycling and removing carbon, as Saudi Arabia announced on March 27 of this year the “Saudi Green Initiative” and ” Green Middle East Initiative” to serve as platforms to enhance cooperation and encourage innovative and sustainable solutions to climate change.
He stressed OPEC’s commitment to support efforts to combat climate change and promote energy access in the context of sustainable development, referring to the contacts that OPEC is making in preparation for the 26th Conference of Parties COP26 to be held from October 31 to November 12 (November) in Glasgow, UK.
OPEC Secretary-General Muhammad Barkindo noted that the organization’s coordination meetings on climate continue to provide a dynamic and transparent stage for exchanging views and knowledge on issues of climate change and sustainable development of interest to the global community, including OPEC member countries.
In the report, the Secretary-General stated that the world needs to move forward by relying on comprehensive and practical approaches to mitigate and adapt to climate change, taking into account the national conditions and priorities of developing countries, stressing the positive role of science, innovation and technology in this field.
Barkindo praised the commitment and support of OPEC member states to major issues of global concern, including sustainable development and climate change, adding that “the 13 member states continue to advocate for these matters under the principles of equity, common but differentiated responsibilities, and special capabilities.”
On the energy transition, the Secretary-General referred to the seventh goal of the United Nations Sustainable Development Goals, which addresses the issue of access to affordable and reliable energy for all, noting that oil is expected to remain an important source of energy and constitute an important part of the current and future global energy mix in the coming years. coming.
The Secretary-General stated that preparations are still underway for the first Ministerial Round Table on Energy, Climate and Sustainable Development of Oil Producing Countries, where the “Round Table” is scheduled to be held on September 6, 2021 within the framework of the Code of Conduct.
On the developments and interactions of the oil market, the international “World Oil” report stated that oil prices rebounded after a report by the US government showed a rapid decline in inventories and a record rise in fuel demand in the midst of the peak summer travel season.
He pointed to the rise in futures contracts, after declining earlier by 2 percent, in New York last Thursday, as domestic crude supplies fell by nearly seven million barrels last week and gasoline supplies declined in March, according to the Energy Information Administration report, while demand for fuel rose to ten Millions of barrels per day.
He explained that oil prices came volatile in recent days after the disagreement among members of the “OPEC +” alliance regarding production increases, while at the same time urging the World Health Organization to be careful about reopening around the world with the spread of the “delta” variable.
He suggested that the skies of Europe may be filled with planes again, but the oil refineries that make jet fuel for them do not see the same recovery, noting that the US administration supports the “OPEC” and its allies to reach a compromise to increase oil production and quickly contain the current state of stumbling.
The report indicated that President Joe Biden wants Americans to obtain reliable and affordable energy, explaining that with the recovery of the American economy from the Covid-19 pandemic, stable conditions are required in the oil market.
He pointed out that the US administration’s stance on the increase in imports of foreign oil contradicts its opposition to supporting domestic production, a trend that began with Biden’s first day in office to stop drilling for oil and gas in the federal lands.
The report cautioned that the United States is not a party to the “OPEC +” talks, but it is closely following the negotiations and their impact on the global economic recovery from the Covid-19 pandemic, as US administration officials have engaged in communicating with the relevant capitals to support a compromise that would allow The proposed production increase to move forward.
On the other hand, with regard to prices at the end of last week, oil prices rose for the second session in a row on Friday, in response to the market’s response to the decline in US inventories, and the market was also supported by indications of strong Asian demand from China and India.
Brent crude futures rose $1.49, or 2 percent, to $75.60 a barrel by 1712 GMT. US West Texas Intermediate crude futures rose $1.67, or 2.3 percent, to $74.60 a barrel.
“The market is starting to grapple with the historic drop in US oil inventories and the lackluster prospect of Iranian oil returning to the market,” said Phil Flynn, chief analyst at Price Futures Group in Chicago.
However, the prices of both benchmarks ended the week unchanged, despite the occurrence of large daily fluctuations and pressure on prices.
In the United States, the US Energy Information Administration said Thursday, “Crude and gasoline stocks fell, while demand for gasoline reached its highest level since 2019, indicating the strengthening of the economy.”
The gains in oil prices have curbed fears that members of the “OPEC +” group may feel tempted to abandon the production restrictions that they followed during the pandemic due to the faltering “OPEC +” talks.
Sources in “OPEC +” told “Reuters” on Wednesday that “Russia is seeking to mediate to help conclude an agreement to increase production,” and the White House said on Tuesday, “The United States held high-level talks with officials in the “OPEC +” alliance.”
On the other hand, the international weekly report “Baker Hughes” indicated that the number of oil and gas rigs in the United States increased by four this week, as the total number of rigs reached 479, an increase of 221 over the same period last year.
The report pointed out that the number of oil rigs in the United States increased by two this week to 378, and the number of gas rigs increased by two, and there are now 101, while the number of various rigs remained the same.
The estimates of the Energy Information Administration for oil production in the United States for the week ending on the second of July (July) was slightly higher than the previous week, averaging 11.3 million barrels per day, an increase of two million barrels per day.
The report noted that the Energy Information Administration raised its estimates on July 1 for the average spot price of the US benchmark, West Texas Intermediate crude, which will be $65.85 a barrel this year, up from an average of $61.85 a barrel that was expected last month.


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