Western policies in relation to Russian crude risk major uncertainties when clarity is most needed, the Saudi oil minister says
Saudi Minister of Energy Prince Abdulaziz bin Salman al-Saud at the Future Sustainability Summit at Abu Dhabi National Exhibition Centre, January 14, 2020. © AFP / Karim Sahib
Saudi Energy Minister Prince Abdulaziz bin Salman has warned Western states against capping the price of crude oil supplied by the kingdom, adding that any attempts to impose a ceiling would be met with a halt of sales and production cuts.
He added that other major oil producers would most likely follow suit.
“So, if a price cap were to be imposed on Saudi oil exports, we will not sell oil to any country that imposes a price cap on our supply, and we will reduce oil production, and I would not be surprised if others do the same,” 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 negatively impact the entire oil industry across the globe.
He compared the oil-price cap with the US proposal to adopt the so-called NOPEC legislation, stressing that the potential impact of such measures on the oil market are similar. NOPEC (No Oil Producing and Exporting Cartels Act) would allow OPEC and national oil companies to be sued under US antitrust law for anti-competitive attempts to limit global supply of oil and the subsequent impact on crude prices.