Kingdom fears ‘losing control’ of oil prices as sanctions raise risk of supply shortages

Kingdom fears ‘losing control’ of oil prices as sanctions raise risk of supply shortages

Saudi Arabia has indicated that it is prepared to raise oil production should Russia’s output fall substantially under the weight of western sanctions, according to five people familiar with the discussions.

The kingdom has resisted calls from the White House to accelerate production despite oil prices trading near $120 a barrel, the highest level in a decade, arguing that it fears the energy crunch could get worse this year and that it needs to reserve spare production capacity.

But alarms about outright supply shortages have risen after the EU launched another round of sanctions against Moscow, including a ban on importing seaborne cargoes of Russian oil into the bloc.

The EU has also agreed a deal with the UK to bar the insurance of ships carrying Russian oil, a move analysts said was likely to severely curtail Moscow’s ability to redirect oil to other regions.

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The latest from the war in Ukraine:

1. JPMorgan chief warns of economic ‘hurricane’ Jamie Dimon struck a gloomy tone on the global economic outlook, warning investors yesterday to prepare for an economic “hurricane” and oil prices as high as $175