Saudi Arabia Regains Oil Market Position
Bin Salman Strengthens Power Base with Current Account Surplus
[Asia Economy Reporter Lee Ji-eun] The cancellation of Saudi Crown Prince Mohammed bin Salman's planned visit to Japan was a decision he made himself, according to the Nihon Keizai Shimbun on the 23rd.
According to the report, Crown Prince bin Salman was scheduled to visit Japan on the 19th to hold talks with Japanese Prime Minister Fumio Kishida but abruptly canceled the trip two days before his arrival.
After completing tours of Indonesia, South Korea, and Thailand, Crown Prince bin Salman returned home and appeared at the opening ceremony of the 2022 Qatar World Cup on the 20th.
The Nihon Keizai, citing an anonymous source, stated, "Since there is no one who can advise him, the Crown Prince himself judged that there was no need to visit (Japan) this time."
It is said that Crown Prince bin Salman, who had been isolated internationally following the 2018 murder of journalist Jamal Khashoggi, canceled the Japan visit himself as he regained influence through the power of oil.
Recently, major countries have been seeking to improve relations with Saudi Arabia, which has vast oil imports and production capacity, amid the global energy crisis triggered by Russia's invasion of Ukraine. On the 17th, the U.S. administration decided to grant Crown Prince bin Salman immunity related to the Khashoggi assassination case. Major foreign media outlets such as The Washington Post immediately criticized the U.S. administration, accusing it of abandoning human rights for the purpose of increasing oil production.
The Nihon Keizai stated, "U.S. oil companies have found it difficult to invest in facilities and produce oil due to pressure for decarbonization," adding, "Meanwhile, Saudi Arabia can produce 1.5 million barrels per day at a low production cost, regaining its position as the dominant player in the oil market."
Crown Prince bin Salman is known to have built a solid power base within Saudi Arabia based on the current account surplus accumulated from oil. According to the International Monetary Fund (IMF), Saudi Arabia's current account surplus in 2022 is expected to exceed approximately $160 billion (about 216.784 trillion KRW), marking an all-time high.
The Nihon Keizai explained, "Crown Prince bin Salman has escaped the international isolation he faced due to allegations of involvement in the killing of a government-critical journalist in 2018," and "He appears to have gained a strong position that allows him to decide whom to meet and when."
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