Saudi Arabia threatens oil embargo in case of price cap – News Block

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman al-Saud at the Future Sustainability Summit at the National Exhibition Center in Abu Dhabi on January 14, 2020. © AFP/Karim Sahib

Source: RT

Western policies on Russian crude risk creating big uncertainties when clarity is most needed, says Saudi oil minister.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman has warned Western states not to cap the price of crude supplied by the kingdom, adding that any attempt to impose a ceiling would be met with suspension of sales and prices. production cuts.

He added that other major oil producers will most likely follow suit.

“So if there is a price cap on Saudi oil exports, we will not sell oil to any country that puts a price cap on our supply, and we will reduce oil production, and I wouldn’t be surprised if others do the same. same thing,” bin Salman said in an interview with Energy Intelligence on Tuesday.

According to the minister, price cap policies inevitably exacerbate market instability and volatility and would have a negative impact on the entire oil industry worldwide.

He compared the oil price cap to the US proposal to adopt so-called NOPEC legislation, stressing that the potential impact of such measures on the oil market is similar. NOPEC (Non-Production and Export Cartel Act) would allow OPEC and national oil companies to be sued under US antitrust law for anti-competitive attempts to limit global oil supply and the subsequent impact on prices of crude.

In December, the EU, G7 nations and their allies introduced a collective ban on Russian seaborne oil exports, along with a price cap of $60 a barrel. Another embargo went into effect on February 5, banning almost all imports of Russian oil products, as well as introducing price caps for diesel and other petroleum products.

Moscow has opposed any attempt to limit the price of its energy exports. The Russian authorities have prohibited any oil deal under the maximum price scheme. In February, Russia announced plans to voluntarily cut March oil production by 500,000 barrels a day as it halts sales to buyers who meet a Western-imposed price ceiling.

According to the Saudi oil minister, the policies pursued by the West add “new layers of risk and uncertainty” to the world oil market “at a time when clarity and stability are most needed.”