Saudi Arabia will not sell oil to any country that imposes a price ceiling

Saudi Energy Minister Abdulaziz bin Salman announced that the Kingdom will not sell oil to any country that imposes a price ceiling on its supplies.

The Saudi Press Agency quoted the Minister of Energy in an interview with Energy Intelligence as saying, “If a price cap is imposed on Saudi oil exports, we will not sell oil to any country that imposes a price cap on our supplies, and we will reduce oil production, and I will not be surprised if other countries take the same measure.” .

He considered that the idea of ​​imposing a ceiling on the price of oil “adds new risks and greater ambiguity at a time when there is a great need for clarity and stability, and such policies will inevitably exacerbate market instability and fluctuations, and this will negatively affect the oil industry.”

The Saudi minister also indicated that “the OPEC draft law does not take into account the importance of possessing a reserve of production capacity and the consequences of not owning this reserve on the oil market, and the OPEC draft law weakens investments in oil production capacity, and it will also cause global supply to drop sharply from demand in the future, and the impact of this will be tangible all over the world, in the producing and consuming countries as well as in the petroleum industry.

“The only sensible course of action in such an uncertain environment is to keep the agreement we made last October for the rest of this year, and that’s what we intend to do, as we have to make sure that the positive signs are sustainable,” he added.

Thus, Western sanctions on Russian oil entered into force on December 5 last year. Where the European Union imposed a ban on the import of Russian oil, which is shipped by sea.

The G7 countries, Australia and the European Union imposed a ceiling on the price of oil for maritime transport at $60 a barrel. Similar measures apply to petroleum products, on February 5.

In response, Russia banned the supply of oil and petroleum products to countries that impose price ceilings in contracts. It also prohibits the supply of oil to foreign buyers, if the contract uses a price cap mechanism.

And the presidential decree, signed by Russian President Vladimir Putin on December 27, entered into force, banning the supply of oil and petroleum products to countries that imposed a price ceiling.