Around a week ago, a Saudi royal order was issued, appointing Dr. Majed al-Mounif the secretary general of the Higher Economic Council, with the rank of minister. Dr. al-Mounif is Saudi Arabia's candidate for the post of secretary general of OPEC, based on his high skills and long knowledge of the organization, and his experience with OPEC affairs. He has represented Saudi Arabia at a number of international dialogue forums on energy. The new appointment to the HEC, with the rank of minister, should not be read as Saudi Arabia's abandoning his candidacy with OPEC, but on the contrary; it shows that Saudi Arabia is determined to protect OPEC, and that it wants to see it run by someone qualified and capable, such as al-Mounif. During his work at the Ministry of Petroleum, al-Mounif has demonstrated wide capabilities and competence, which allowed him to take on the post of secretary general. Moreover, the Kingdom has insisted that this post go to a Saudi official it knows and has worked out, and has represented his country for a long time, and this is Dr. al-Mounif. As soon as he officially took over, it was interpreted in Saudi Arabia as if he had given up being OPEC's secretary general, or that country had withdrawn his candidacy, and this is not what happened. The two competing candidates are Thamer Ghadban from Iraq, who is the oil advisor to the prime minister, and Iran's Gholam Reza Nuzari, a former oil minister who currently works in the sector in his country. Saudi Arabia's interest in OPEC and its activities saw it propose a candidate whom it had entrusted with the secretary general post of an important national council tasked with the economy and the development of the country. Saudi Arabia plays an important role in OPEC; it is the world's biggest oil producer and works to see market stability. It currently produces 9 million barrels of oil a day, after this figure rose to 10 million barrels a day last summer. Saudi Arabia reduced its production gradually, not in order to raise prices, as some accused it of. Instead, the prime reason behind lowering production was due to the drop in domestic consumption, even though Saudi Arabia is the biggest consumer of its oil. There were also some reductions in demand, because of the stoppage of some refineries. We often hear a Saudi oil minister affirming that his country is adjusting its production in order to meet the needs of clients, and not in order to raise prices, as some claim. Four months ago, the price of oil rose to $130 a barrel, and Saudi Arabia increased its production to 10 million barrels, with the price then falling to $100 a barrel and Saudi Arabia confirming that there would be no shortfall in oil in the markets. It was clear that Saudi Arabia's policy was one of price and market stability, and not raising prices in a way that hurts the global economy. There are many unfounded accusations about Saudi Arabia's oil policy, while it has been determined to maintain balance in the oil market factors of supply and demand. It has also been determined to see OPEC's secretary general post go to someone with experience and qualifications. Unfortunately, politics has intervened in the selection of this individual, and the topic was delayed for one year. The current secretary general of OPEC, Libya's Abdullah al-Badri, who has served for six years, saw his term extended for the maximum period of time according to the by-laws of OPEC. But political disputes could increase this period because it is impossible to arrive at a unified position. Reaching this agreement requires political consensus among the leaders of the member states. In view of the current policies of Iraq and Iran in the region, from supporting a Syrian regime that is killing its people and destabilizing things, to intervening in Lebanon, Bahrain and elsewhere, there is no hope that this accord will materialize. This is because the issue is political, and not economic. We should not see the paralysis of an organization that has managed to protect the interests of its members, with its largest producer (Saudi Arabia) largely responsible for this, as it has protected both markets and OPEC countries' revenues for more than a decade.
