IPrince Abdel Aziz Ben Salman is known for his irritability. The half-brother of Mohammed Bin Salman, the ruling prince of Saudi Arabia, is his energy minister and, as such, the head of the Saudi delegation to meetings of the Organization of the Petroleum Exporting Countries (OPEC). ), the last of which was held in Vienna on Sunday, June 4.
On May 31, he notified all the journalists of the Reuters and Bloomberg agencies, as well as those of the Wall Street Journal, that they would not be allowed to attend the meeting. These henchmen of the infamous traders who dare to lower oil prices have no place in the house supposed to control them.
It is because of them, and this price of oil which continues to languish around 70 dollars (65 euros) a barrel, that the cartel of black gold producers had, once again this Sunday, to close a little more the tap to stop the fall. The organization will cut production by 1.4 million barrels per day, just two months after a cut of 1.6 million announced in April. “We will do whatever is necessary to maintain price stability”said the prince, as if he were a central bank president.
Balance at 80 dollars
The Saudis are all the more stubborn as it is their country which will once again have to make the biggest effort. It alone will lower its production by one million barrels in July. Russia, invited to the conference, promised a “independent expertise” before committing, while the United Arab Emirates were given permission to increase their volumes. Only Nigeria and Angola will have to sacrifice a little, while they are not even able to produce what they should, due to chronic under-investment.
The princes of Riyadh were in fact the only ones who wanted to sacrifice quantities to raise prices. Even if it means losing global market share. Their obsession is explained by the very ambitious and expensive policy of Mohammed Ben Salman, who dreams of building industries of the future and futuristic cities in the Saudi desert. To balance its budget, it needs oil at 80 dollars.
We were almost there in April, after the OPEC decisions. But it was not enough. The incorrigible market and its staggering demand have ruined the cartel’s ambitions. The struggle of Western central banks against inflation is slowing growth and therefore consumption. Chinese activity is also turning less quickly than expected. The Saudi princes are multiplying geopolitical acrobatics and demonstrations of force, but for the moment they are quite alone.