Saudi Arabia Pledges Oil Market Stability

Saudi Arabia is continuing with its balanced oil policy to support the market’s stability, Crown Prince Salman, deputy premier and minister of defense, said on Saturday while addressing the G-20 summit.

“The Kingdom is continuing with its balanced policy and positive and influential role to promote the stability of the markets … and taking into account the interests of producers and consumers of energy,” the crown prince said.

“The Kingdom has invested heavily to keep the additional production capacity to enhance the stability of the global energy markets, and thereby supporting the global economic growth and its stability,” he told the summit.

Saudi Arabia has a production capacity of 12.5 million barrels per day.

The comments come ahead of a pivotal OPEC meeting on Nov. 27, where producers will consider whether to cut output in order to shore up prices that have dived more than 30 percent to four-year lows below $80 a barrel.

Australian Prime Minister Tony Abbott opened the summit by urging world leaders to deliver an initiative to boost the global gross domestic product by $2 trillion.

Abbott told delegates from the world’s 20 largest economies that they should focus on economic issues rather than security situation in Ukraine, regional territorial disputes and the debate on global warming.

In his keynote speech, Prince Salman said the slow pace of global economic recovery, coupled with increased risks, demanded the implementation of economic policies and growth-supporting structural reforms as well as creating job opportunities.

“We have to continue strengthening the fiscal and structural policy frameworks in the economies of some member states,” the crown prince said. Prince Salman emphasized the link between economic growth and world peace. “We can’t achieve one without the other, which requires all of us to cooperate and work together to address the issues that are considered a threat to peace,” he said. “We need to work to find a just and comprehensive solution to the Arab-Israeli conflict, as its continuation and the lack of solutions have contributed to the instability in the Middle East,” he pointed out.

Prince Salman added that the ongoing Syrian crisis has aggravated the suffering of the Syrian people and contributed to a state of polarization, as well as the spread of violence and terrorism in the region.

“From this aspect, we call upon the powerful and influential G-20 states to work together with the help of countries in the region as well as the international community, to find appropriate solutions to these pressing issues in a way that supports our common goals to develop a strong global economy,” he said.

Prince Salman said the Saudi economy has achieved a strong growth in recent years, especially in the non-oil sector.