Kavan Choksi: Saudi Energy Minister Claims OPEC+ Is Not Political

Because of the ongoing conflict between Ukraine and Russia, Kavan Choksi believes it is essential to look at how it impacts several (if not all) markets. For example, at the World Government Summit in Dubai, Saudi Energy Minister Abdulaziz bin Salman described Russia's move to Ukraine as a political issue. However, he said OPEC+ was more concerned with ensuring the global oil supply. According to the Minister, "there is a platform for moral, ethical, and political issues; for the last 35 years, OPEC has compartmentalized our political differences."

In light of the warfare, the United States and the United Kingdom have cut off Russian oil imports and imposed economic sanctions on the country. Russia, which produces approximately 10 million barrels annually, accounts for one-tenth of the global crude supply.

According to the Saudi energy official, OPEC+ took a "silo" approach to resolve such issues. The Minister claimed that they leave politics outside the door when they enter the building for meetings and that culture has stayed with them. "If we don't do that, we won't have dealt with as many countries simultaneously," Bin Salman explained.

Suhail Al Mazrouei, the UAE's Energy Minister, has expressed a similar viewpoint. "We had countries at war in OPEC and OPEC+, and they were both partners - we didn't pick a side, and we don't take a side today," said the Minister. However, because these officials have one mission: to stabilize the market, Kavan Choksi believes it is vital that they do not bring politics into the organization and have that debate.

The goal is to calm the market and increase volumes as much as possible, so if someone asks anyone to leave, Kavan Choksi realizes it will raise prices and do something contrary to what consumers want.

Keeping the Oil Supply Steady

The UAE Minister said the country is attempting to bring more oil into the market. However, it would be best to have financial resources and decouple politics from energy availability and affordability. Kavan Choksi believes combining the two may result in poverty and global economic stagnation.