Saudi Arabia says it won't take any further action to curb soaring oil prices




Faisal bin Farhan
Faisal bin Farhan  
  • Oil prices have soared past $110 a barrel since Russia's invasion of Ukraine led to an energy crisis.

  • Saudi Arabia's foreign minister told the World Economic Forum that it won't take any further action to calm markets.

  • "The kingdom has done what it can," Prince Faisal bin Farhan said at a panel in Davos.

Saudi Arabia is unlikely to take any further action to contain oil price rises, according to the country's foreign minister.

"As far as we are aware there is no shortfall of oil," Prince Faisal bin Farhan told the World Economic Forum at Davos on Tuesday. "The kingdom has done what it can."

Saudi Arabia is the world's largest crude oil exporter, according to the International Energy Agency. In March, the IEA drew up a 10-point plan to release more oil from stocks in an attempt to curb soaring prices.

Russia is one of the world's largest oil producers and its invasion of Ukraine has led to an energy crisis. Crude prices are up nearly 70% over the past year and have risen 20% past $110 a barrel since Russia's assault began.

"Our assessment is that actually oil supply right now is relatively in balance," Prince Faisal said.

"It's much more complex than just bringing barrels to the market," he added - seemingly implying that Saudi Arabia would release no further oil supplies.

Oil price surges have contributed to rising US inflation, which hit 8.3% in April. The IEA's executive director has also warned that a summer spike could trigger a global recession.

"This summer will be difficult because in summer, as we know, the oil demand normally goes up in peak driving season," Fatih Birol told Bloomberg TV on Monday. Birol also said that "everybody in the global energy markets" needs to do what they can to keep a lid on energy prices.

But Prince Faisal argued that the solution to soaring energy prices is further investment in refineries, rather than increased supply.

"The problem is refined products, which is something that is more connected to a lack of investment over the last year-and-a-half [to] two years in refining capacity."

Saudi Arabia is the effective leader of the Organization of the Petroleum Exporting Countries. The group, together with partner countries such as Russia, Oman and Kazakhstan, have, since April 2020, jointly restrained crude output in response to the drop-off in demand from the coronavirus crisis. That deal expires in three months.

COMMENTS

More Related News

Shipping Costs to Add 1.6 Percent to Inflation, According to Report
Shipping Costs to Add 1.6 Percent to Inflation, According to Report
  • World
  • 2022-06-29 13:33:46Z

Spike in global shipping costs - spurred by the war in Ukraine - to add 1.6 percent to consumer prices and 11.9 percent to global import prices, says U.N...

UK sets out emergency plan to cut gas supplies to Europe - live updates
UK sets out emergency plan to cut gas supplies to Europe - live updates

Rishi Sunak resists demands from Johnson for cut to corporation tax Government clears path for £6bn sale of RAF Typhoon supplier to US FTSE 100 falls 0.4pc...

Norway must prepare for faster drop in oil demand on road to 2050 - IEA
Norway must prepare for faster drop in oil demand on road to 2050 - IEA

Norway must do more to prepare for a decline in its dominant oil and gas industry in the coming decades as other nations start to free themselves from...

Oil prices take breather after three-day rally
Oil prices take breather after three-day rally

Oil prices fell on Wednesday after rising in the previous three sessions but losses were limited on the view that global supply tightness will continue as...

G7 poised to cap Russian gas prices as it turns the screws on Putin - live updates
G7 poised to cap Russian gas prices as it turns the screws on Putin - live updates

Union ballots 115,000 Royal Mail staff over 'biggest strike' of the summer Heathrow warns travel chaos will last until 2026 as regulator cuts landing fees...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • Paints Company in Dubai
    (2022-06-12 17:37:03Z)

    This type of article that enlighted me all throughout and thanks for this.This going to be excitement and have fun to read. thank to it.

    REPLY
  • Roller Blinds in Qatar
    (2022-06-12 17:37:42Z)

    Thanks for sharing this with so much of detailed information, its much more to learn from your article. Keep sharing such good stuff.

    REPLY

Top News: Economy