Saudi minister bin Salman threatens to cut oil supply in response to price ceilings

MOSCOW, March 15 – RIA Novosti. Saudi Energy Minister Prince Abdulaziz bin Salman threatening Refusal of supply if Saudi oil prices peak.

As Bin Salman pointed out in an interview with Energy Intelligence magazine, the price cap policy exacerbates the instability and volatility in the market, which negatively affects the oil industry.

According to the minister, such actions are similar in effect to attempts to pass the NOPEC law, which allows the US government to file antitrust lawsuits against OPEC members.

“If a cap is placed on the export price of Saudi oil, we will not sell oil to any country that imposes a cap on our supply, and we will reduce oil production, and I will not be surprised if there are others. Do the same,” stressed the minister.

Western oil sanctions against Russia came into effect on December 5, 2022: the European Union stopped accepting the transportation of Russian oil by sea, and the G7 countries, Australia and the EU imposed a price cap on oil during sea transportation at $ 60 per barrel. – Transport and insurance of more expensive oil is prohibited. In response, Russia banned it from supplying oil to foreigners from 1 February if the contracts directly or indirectly provide for the use of the marginal price fixing mechanism.

Since February 5, fuel sanctions came into effect: the European Union banned the import of Russian petroleum products, while the EU and G7 countries set a ceiling price for them. The limit is set at US$100 per barrel for petroleum products originating in Russia, and US$45 per barrel for reference oil quality (diesel fuel) traded at a premium and traded at a discount (fuel oil).