Opec is stabilising factor for world economy: Al Hamili

The UAE has always been advancing Opec’s message to deliver balance and stability in the world economy, the UAE Minister of Energy Mohammed Bin Dhaen Al Hamili said in a statement to mark the 50th anniversary of the Organisation of the Petroleum Exporting Countries (Opec).

“Throughout five decades, Opec has been following the open-door policy through continuous dialogue and meeting with non-Opec producers and consumers. The two sides have always reached common denominators that contributed to stability of the world economy, the minister, who was the UAE former governor at Opec, said.

With its bright history and global heavyweight, he affirmed Opec will always remain a key factor in protecting gains of its member states and a major stabilising factor in global economy.

“Opec has managed to secure enough oil supplies that meet the world demand and help stabilise the international oil markets and world economy,” he added.

According to him, Opec has experienced historic milestones generated by global economic fluctuations but it has been and still showing resilience to ride out those storms and handle them in an approach that laid down more stronger foundations for sustained growth of the world economy.

Opec, he noted, has acted as a stabilising factor for the world economy and won the praise and respect of the whole world.

The 12-member Vienna-based organisation was founded in 1960 in Baghdad by five founding members - Saudi Arabia, Kuwait, Iraq, Iran and Venezuela.

The UAE joined Opec in 1971 and is still an active player within it.
Al Hamili also extended warn congratulations to the UAE leadership which underlined its consistent support for the oil group.

Meanwhile, Ali Obaid Al Yabhouni, UAE Governor for Opec, said Opec has proved itself to be a cohesive organisation over the last half century. Two Gulf wars, that pitted member states against each other, did not weaken the resolve or the effectiveness of the organisation.

“Accusations of Opec being a cartel do not hold water, as cartels are organisations or groups of companies that meet to fix prices. This is not the case with Opec, which abandoned any attempt to fix prices several decades ago.

“Instead, ministers focus on co-ordinating production to ensure that the right amount of oil reaches consumers. Equally unfounded is the myth that Opec intentionally reduces production in order to raise prices. But on the contrary, members step in to raise production in response to global emergencies or geo-political events, such as during the two Gulf wars and the strike that paralysed oil production in Venezuela in late 2002,” he stressed.

“Opec members' ability to respond to unforeseen events and, whenever necessary, to increase production depends on massive investments in spare capacity - oilfields and oil facilities kept unused in case of an emergency. This is a unique and free service that Opec members extend to the world community.

“It is also a myth that Opec members are necessarily rich nations. Many members are developing countries with an urgent need for oil revenue for their social and economic development. Yet individual member states such as the UAE rank amongst the world's most generous foreign aid donors. All members contribute to the Opec Fund for International Development (OFID), one of the world’s most generous multilateral aid agencies. Since its creation in 1976, OFID has committed over $12 billion (Dh44 billion) to help alleviate poverty and promote development in 127 countries. For example, it recently donated $500,000 to victims of flooding in Pakistan,” he said.

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