Algeria Succeeded In Leading Mediation Between Saudi Arabia, Iran To Save The “OPEC” Meeting

Algeria is leading the mediation between Saudi Arabia and Iran aiming to build a good relationship between the neighbouring rivals, the hoping to succeed in the Organisation of the upcoming Petroleum Exporting Countries “OPEC” meeting, that will take place in Algeria by the end of September.

Algeria is keen with all its efforts to make the success of the upcoming meeting that will be held on the sidelines of the energy forum, which aims to drag the Petroleum Exporting Countries towards a consensus on the outlet that will end the continuing decline of oil prices in the global markets, and push it toward the stability that will protect, or at least, reduce the repercussions of the level that the price reached on the economies of those countries.

In this regard, the website “Monde Afrique” said that Algeria stepped up its moves to persuade some of the countries of the organisation through cutting its oil production, hoping to push prices upwards. 

In order to pave the way towards this goal, Algeria is making efforts to convince Riyadh and Tehran to sit at the same table on September 28 and 29, as the two countries are considered the most influential in the oil market because of their conflicting positions, and by virtue of their productivity.

It is known that Tehran confirmed, last Thursday, its participation in Algiers meeting, and this came after the Iranian Oil Minister, Bijan Zangeneh, said that Mohammed Sanusi, Secretary-General of the Organisation of Petroleum Exporting Countries, will visit Tehran later, in what appeared as an indication of Tehran’s readiness to deal positively with the mediation.

It is noteworthy that the deep differences between Saudi Arabia and the Gulf states on the one hand, and Iran on the other hand, contributed to the lack of compatibility in previous meetings, on the withdrawal of the excess supply of oil in the world market, a goal that has not been achieved, despite the efforts that have been made, which was negatively reflected on the prices, which fell to levels that have not been noticed since many years.

According to the same source, the Algerian mediator seeks to convince the Saudi party to review its oil policy, so as it pushed towards the approval on the production cuts, as it is considered the only way to prevent the continuation of future price declines, which is a demand that does not serve the development of shale gas industry, which is among the reasons that contributed to the decline in oil prices in the last few years, as this justification was accepted by the Saudi party.

Available information indicates that the Algerian mediation succeeded to some extend in convincing the Saudi and Iranian sides with the usefulness of consensus on the historic decision that could raise prices to acceptable levels by the majority of the Petroleum Exporting Countries, but this success remains dependent on the steadily two countries’ positions until next month.