Jakarta –
China and Saudi Arabia stressed the importance of stability in global oil markets and the role they play in achieving this balance. This follows Chinese President Xi Jinping’s three-day visit to Saudi Arabia.
“China welcomes the Saudi kingdom’s role as an advocate of balance and stability in the world oil market and as the leading reliable exporter of crude oil to China,” Xi said, quoted by CNBC on Saturday (12/10/2022 ).
China is the world’s largest importer of crude oil, while Saudi Arabia is the largest exporter of natural resources. The Saudis also lead the OPEC+ producer alliance.
Xi met with King Salman bin Abdul-Aziz Al Saud and his heir, Saudi Crown Prince and Prime Minister Mohammed bin Salman (MBS). The talks so far have resulted in the signing of a comprehensive strategic partnership agreement and 12 agreements and memorandums of understanding on topics such as hydrogen, direct investment and economic development.
The two countries confirmed on Friday that they will continue to support each other. Furthermore, he also called for cooperation with Iran and the International Atomic Energy Agency.
Xi invited King Salman to come to China. Xi arrived in Riyadh, the capital of Saudi Arabia, on December 7 for a three-day visit as Beijing seeks to revitalize its economy. Meanwhile, Saudi Arabia maintains relations with the Middle East after the energy policy conflict with the United States (US).
Washington previously accused Saudi Crown Prince Mohammed bin Salman of killing US dissident journalist Jamal Khashoggi.
Energy interests continue to be deflected. Washington has repeatedly urged OPEC+ to get more supplies of crude to market and ease the burden on consumers competing with limited access to energy following Russia’s invasion of Ukraine.
OPEC+’s decision in October to cut production quotas by 2 million bpd from November has led to a war of words between US and Saudi officials.
The Brent crude oil contract for February delivery traded at USD76.13 a barrel as of 11:55am London time on Friday morning. This figure is down 2 cents from December 8. The first month Nymex WTI contract was at $71.79 a barrel, up 33 cents from Thursday’s closing price.
(hns/hns)
