Saudi Arabia will not sell oil to the initiators if a price ceiling is imposed against it
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Saudi Arabia, if oil sanctions are applied against it, will not sell energy to countries that will introduce a price ceiling, said Energy Minister Abdulaziz bin Salman Al Saud. In his opinion, the sanctions applied against the Russian Federation create risks for the market. The minister also assured that the parameters of the OPEC+ deal would not change until the end of the year.
Abdel Aziz bin Salman Al Saud believes that the policy of limiting oil prices provokes volatility in the markets and slows down the development of the industry. “If Saudi oil exports come under restrictions, we will not sell oil to any country that imposes a price ceiling on our supplies, and we will reduce oil production. I won’t be surprised if others do the same,” the minister told the magazine energy intelligence.
This is how the minister answered the question about the re-submission of the NOPEC anti-cartoon bill to the US Congress, as well as about the risks of applying a price ceiling to oil producing countries. “The NOPEC law and the distribution of the price cap are very different things, but their potential impact on the oil market is the same. Such a policy creates new risks and uncertainties at a time when clarity and stability are most needed,” said Abdulaziz bin Salman Al Saud.
According to the minister, NOPEC does not take into account “the importance of having free capacity and the consequences of the lack of free capacity for market stability.” The bill could undermine investment in the oil industry and cause global supply to fall far behind demand.
In May 2022, the US Senate approved the NOPEC bill. It will allow the US government to file antitrust lawsuits against OPEC members. The price ceiling for Russian oil has been in effect since December 2022. It was introduced by the Western coalition – the US, EU, G7 and Australia.
About NOPEC – in the material “Kommersant” “Get it or lose it”.
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