Oil coup for Saudi Arabia as output cuts are extended

Saudi Arabia's Energy Minister Prince Abdul Aziz bin Salman. The Kingdom pulled off a coup in the world of oil diplomacy with an agreement to extend the historic output cuts credited with pulling energy markets out of chaos. (Screenshot)
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Updated 07 June 2020

Oil coup for Saudi Arabia as output cuts are extended

  • ‘Compliance is vital,’ Prince Abdul Aziz says

DUBAI: Saudi Arabia pulled off a coup in the world of oil diplomacy on Saturday with an agreement to extend the historic output cuts credited with pulling energy markets out of chaos.

At a virtual meeting of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia, 23 exporters agreed to roll over the record-breaking cuts until the end of July, with a monthly option to renew the agreement after that.

The deal has strict provisions against producers who fail to comply. Some countries, notably Iraq and Nigeria, have been accused of ignoring the agreed caps on crude production.

“Effective compliance is vital if we are to secure the hard-won stability in global oil markets and restore confidence in the unity and effectiveness of the OPEC+ group,” said Prince Abdul Aziz bin Salman, the Saudi Energy Minister. “This stability and positive market sentiment will bring its own rewards.”


OPEC+ agreed unanimously that countries that have fallen short of full compliance since May 1 will make up that shortfall over the summer months and will adhere to production limits in the future.

Compliance will be assessed at monthly ministerial monitoring meetings until the end of the year. “We must be vigilant. Each of the 23 countries represented here must be on guard for any signs of backsliding from their commitments,” Prince Abdul Aziz said.


“All OPEC+ partners must deliver on their pledges for the collective pledges to be sustained. Each country has to adhere to its commitment to restrain production along the agreed guidelines.”

The minister referred to the recent “low point” when American crude briefly traded below zero, but said the OPEC+ deal, bolstered by extra voluntary cuts from Saudi Arabia, the UAE and Kuwait, had helped the global market over the worst.


Brent crude, the global benchmark, has more than doubled in price since the cuts took effect. “Demand is returning as big oil-consuming economies emerge from pandemic lockdown,” Prince Abdul Aziz said. “Through our commitment to a proactive policy, within a cohesive and collective framework, we are restoring confidence and stability to global oil markets. Today, we have grounds to be cautiously optimistic about the future.”

Energy experts welcomed the deal, but echoed the minister’s caution. “This is an important success for OPEC+. It shows ability to deliver, willingness to address discipline, and coherence in the approach,” saidChristof Ruehl of the Center on Global Energy Policy at Columbia University.

“The problem is that the more OPEC+ succeeds, the easier it becomes for private producers to enjoy the fruits of its labor.”


New projects aim to share Saudi human-rights successes with the world

Updated 16 July 2020

New projects aim to share Saudi human-rights successes with the world

  • Initiatives aim to highlight historic reforms and promote more accurate international view of Kingdom’s efforts to improve human rights
  • Human Rights Commission also aims to enhance cooperation with organizations working in the field in other countries

RIYADH: The Saudi Human Rights Commission (HRC) has launched three international initiatives to highlight the success of recent reforms implemented by the Kingdom, and enhance its cooperation with other organizations working in the field.

“(Saudi Arabia) has witnessed historic transformations and qualitative moves in human rights, as more than 70 reform decisions in the field were issued under the directives of King Salman and under the direct leadership and tireless follow-up of Crown Prince Mohammed bin Salman,” said Awwad Al-Awwad, the president of the HRC.

He described the reforms as a success story, and said the commission will work to highlight the achievements around the world.

At the forefront of this effort is the launch of the HRC’s International Communication Program, as part of which representatives of civil-society institutions will be invited to participate in commission meetings and international human-rights events. In addition, young national leaders will be trained to enhance the representation of the Kingdom in human-rights organizations worldwide.

The HRC considers that the program presents an important opportunity to educate and inform international partners and the public about the unprecedented steps Saudi Arabia is taking to meet international standards of human rights and its achievements to that end. It also provides a mechanism that will enable the country to develop its relationship with the international community and highlight developments and reforms.

Al-Awwad also announced the launch of the HRC International Platform, which will focus on sharing English-language information and data reflecting the progress made in safeguarding human rights in the Kingdom. This will include direct interaction with the public on social media.

The third new initiative is a monthly, English-language newsletter featuring information about the latest human-rights reforms and developments in Saudi Arabia, including efforts being made to promote and protect them. A mailing list has also been created that includes more than 500 prominent human-rights campaigners around the world. The newsletter and other HRC publications will be sent to them to enhance communication and interaction, and keep them informed of human-rights initiatives in the Kingdom.

Al-Awwad said that the new initiatives are designed to reveal the true state of human rights in the Kingdom, which has undergone unprecedented development at all levels in the past few years. They will also improve communication and encourage positive relationships with human-rights campaigners and organizations in other countries, he added, in an effort to correct misconceptions that have formed for many reasons, not least the absence until now of accurate information.

The HRC has already produced the first issue of its newsletter, which highlighted the Kingdom’s improved ranking in the latest edition of the US State Department’s annual Trafficking in Persons Report, which was published in June. It praised the efforts being made by Saudi authorities to crack down on human trafficking through a series of reforms, the most recent of which was the launch of the national referral mechanism. This was strengthened by a Saudi-international training partnership, organized through the International Organization for Migration and the UN Office on Drugs and Crime, and a Saudi-US partnership to combat human trafficking.

The newsletter also reported on the Kingdom’s efforts to tackle terrorism, which undermines and threatens human rights. In addition, it included information about penal reforms, and the Supreme Court’s decision to abolish flogging as a punishment in ta’zir cases — in which, under Sharia, punishment is at the discretion of the judge or ruler — and replace it with imprisonment and/or a fine.