Saudi Energy Minister fears energy crisis due to sanctions against Russia
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Saudi Energy Minister Abdulaziz bin Salman said sanctions against Russia, including an embargo on Russian fuel, could lead to an energy crisis.
“All these so-called sanctions, embargoes, lack of investment will only lead to one thing – the absence of energy supply of all kinds when it is most needed,” Mr. bin Salman said at an industry conference in Riyadh (quoted from Reuters).
On October 5, the OPEC+ countries, which include Russia and Saudi Arabia, agreed to reduce the target level of oil production by 2 million barrels per day from November 2022 to the end of 2023 as part of the Declaration of Cooperation. US President Joe Biden called the production cut short-sighted and in Russia’s interests.
On December 5, an embargo on Russian oil supplies to the European Union came into force, and a price ceiling for oil from Russia was set at $60 per barrel. These restrictions were introduced, in particular, by the EU countries, the G7 and Australia. February 1 OPEC+ committee recommended maintain the level of production adopted in the fall.
Decisions in OPEC + mainly depend on the position of its two main members – Saudi Arabia and Russia. Saudi Arabia is satisfied with the current level of prices, in addition, Riyadh can expect that oil production in Russia will begin to decline as a result of the EU embargo and Western sanctions. Russian President Vladimir Putin January 30 discussed OPEC+ deal with Crown Prince of Saudi Arabia Mohammed bin Salman, however, it was not reported what exactly the negotiations were about.
Read more about what threatens Russia with the decision of OPEC + not to change the level of production – in the material “OPEC+ has gone on a well-trodden path”.
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