UNASUR Urges Oil Price Stability at Summit in Saudi Arabia

The UNASUR bloc called for greater stability of oil prices in Saudi Arabia at the fourth Summit of South American-Arab Countries, known as ASPA, on Tuesday.

The declaration in the Saudi Arabian capital Riyadh came ahead of speeches given by Ecuadorean President Rafael Correa and Venezuelan President Nicolas Maduro who are expected to present a joint proposal to stabilize the price of oil at around US$80 a barrel.

“We have governed with stable oil prices, but can we govern with low prices?” the Unasur representative asked the conference of South American and Arab leaders, inviting attendees to think about future generations and how the fall in prices of crude oil affects the security of social well being.

#ArabiaSaudita: En #IVCumbreASPA (10 y 11 nov.) se busca una mayor integración entre países árabes y suramericanos. pic.twitter.com/iBjz72V6qX

— Rey Gómez (@ReyGomeztlSUR) November 10, 2015

“ASPA seeks greater integration between South American and Arab countries.”

Furthermore, the representative emphasized that South American countries respect the precepts of the United Nations Charter, for which the intention “is not to involve ourselves where we are not called” in relation to internal conflicts that are happening across the Middle East, but called for a commitment to collaborate in the peace process.

Maduro and Correa are attending the two-day meeting along with representatives and heads of government from the 34 member countries of the bi-regional mechanism for cooperation and political coordination.

The Venezuelan leader said the proposal was coordinated with his Ecuadorean counterpart, and the government of Algeria, which also sends delegates to the summit.

Since 2014, oil prices have declined significantly, causing serious difficulties for individual commodity exporters like Venezuela, Ecuador, Colombia and Brazil, whose economies are burdened by lack of oil revenue.

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Despite calls by some members of the Organization of the Petroleum Exporting Countries to reduce production to shore up prices, the bloc has decided not to cut oil output and instead stick with its decision to maintain the price of oil below US$50.

Venezuela wants the group to establish a price band between US$70 and US$80 per barrel to ensure oil field investments and help strengthen the region’s economy.

Last month, global oil prices climbed to more than US$50 per barrel for the first time since July. OPEC says the market will be "more balanced" in 2016.

ASPA is composed of the 12 countries of the Union of South American Nations and the 22 members of the Arab League. The heads of state summit is held every three years, the first was held in 2005 in Brasilia, Brazil, followed by a second in Doha, Qatar, in 2009. It was last held in Lima, Peru, in October 2012.

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