Daily Times

The simple-sounding OPEC is an intergovernmental organisation consisting of some of the world’s largest oil-producing nations. Launched in 1961 by the Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela, OPEC has been instrumental in playing its role in the global supply of oil and gas.

However, the world does not see OPEC in the same light. Recently, OPEC has been increasingly seen or promoted as a global cartel manipulating oil prices. However, a cartel is merely a group of producers of a particular commodity or service that formally agree to limit supply to manipulate prices. This group of otherwise independent players, countries in the case of OPEC, act as if they were a single producer, cornering the market for their product or service to establish prices without the danger of competition. So what has changed to cause this significant shift in the western perspective about OPEC, and what are the real implications of this global oil economy on a country like Pakistan?

It all began with the OPEC announcing to reduce the oil output by 2 million barrels per day in a world post-Ukraine-Russia conflict. While the US and European saw it as an effort to sabotage their efforts to restrict and contain Russia through sanctions, the OPEC countries merely portrayed it as an economic decision. The Biden Administration even pleaded to the OPEC countries to delay their decision by a month or post the US mid-term elections. The reason sighted was a sudden spike in inflation in the country. However, OPEC’s disagreement is what has truly shaken the long-lasting friendship between the US and Saudi Arab. What followed was a string of heated statements by US President Biden, which was once again calmly shrugged off by the Saudi representatives as a pre-election gimmick.

The measure’s purpose is to relieve oil prices from the control of a few countries by subjecting OPEC states to antitrust laws.

Many may not have looked at the situation closely enough, but I believe this will not be an isolated incident. In May, the US Senate Committee passed the NOPEC Bill. However, to become law, it still needs to go through the full Senate and House and be signed by the President. Now, the probability of NOPEC, being passed, is becoming a real possibility, especially if seen in the light of the current scenario. The measure’s purpose is to relieve oil prices from the control of a few countries by subjecting OPEC states to antitrust laws. If enacted, the law would strip OPEC members and their oil firms of protection and sue them for conspiring to raise prices. If passed, this will send a massive shock wave across the oil-producing countries.

Amongst other options is “an immediate freeze” on the diplomatic relations between the US and Saudi Arabia, putting an end to the US protection of the Gulf states, including bringing an end to arms sales beyond what is needed to defend US personnel. What stops the superpower from taking the step is the fact that the United States is the world’s greatest exporter of armaments, with foreign military sales averaging over $47 billion in the fiscal year 2021. According to 2021 research by the Stockholm International Peace Research Institute, Saudi Arabia accounts for 24% of all US weaponry sales.

I have always maintained a consistent stance on the Biden Administration as the “return on Obama Doctrine.” There are stark similarities in the Foreign Policy of the two administrations. Obama’s Foreign Policy was a “tragedy” – it failed to break free from the US liberal hegemony and worked as an extension of Bush’s “war on terror.” His misreading of the Arab Spring, his disastrous intervention in

Biden’s Foreign Policy is not far from the 44th US President and is unfavourable to Pakistan, China, and third-world countries at large. The latest National Security document did not mention Pakistan, while China has been described as “America’s most consequential geopolitical challenge.”

Biden’s reaction and reading of the oil-producing countries seem to be inciting war globally & modern colonialism in the name of democracy. More worrying is Biden’s Statement, “it’s time for the US to rethink its relationship with Saudi Arabia.” Ali Shihabi, a Saudi author and analyst, responded to the entire situation, “This whole circus is just convincing Saudi policymakers that they can no longer rely primarily on the US… The era of putting all its eggs in the US basket is over for the kingdom.”

In this era of global connectivity and interdependence, where countries should strive for diplomatic success, the US seems to be walking backwards. As British statesman, Lord Palmerston once said: “We have no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow.” Banking on the seventy-year relationship with Saudi Arabia may not be an option for the US, but hoping to improve relations on a diplomatic front could achieve wonders. Because today, more than ever, world leaders need to promote neo-trade liberalisation, peace, more diplomatic activism, and improved relations with South East Asia and China.

Libya and his inept interference in Yemen and Syria are notable foreign policy failures.

The writer is the Foreign Secretary-General for BRI College, China. He tweets @DrHasnain_javed