Prince Abdulaziz bin Salman, Saudi energy minister today said the impact of European sanctions on Russian crude oil and price cap measures still “did not change the oil scenario.
He said that the implementation of price cap still still unclear.
From Dec 5, the price cap on Russian oil by Group of 7 price came into effect while Russia vowed to defy this decision.
“What is happening now in terms of sanctions and price caps imposed and all of it really did not bring clear results, including measures implemented on Dec. 5, we see a state of uncertainty in implementation,” Prince Abdulaziz told a forum held following the country’s 2023 budget announcements in Riyadh.
Saudi energy minister said that Russia’s reaction must to be taken into account when looking at the post-price cap global markets.
“These tools were created for political purposes and it is not clear yet whether they can achieve these political purposes,” he said, referring to the price cap.
Other factors affecting the market going into 2023 include China’s COVID-19 policies. The impact on China’s economy from easing Covid restrictions still “needs time”, he said.
Saudi energy minister that OPEC+ decision to cut oil output by 2 million barrels per day from Oct. 5 was a good strategy keeping in view the ongoing oil market trends
The alliance last met on Dec. 4 and decided to keep output unchanged amid a weakening economy and uncertainty over how the Russian price cap would affect the market.
