Saudi Arabia contributes to rebalanced oil market amid severe shocks in 2022

Saudi Arabia contributes to rebalanced oil market amid severe shocks in 2022

RIYADH - The global energy crisis escalated dramatically in 2022 when the oil market became subject to severe shocks due to several factors with no alternatives to address them.

The crisis, which has become the hottest on the international scene, was reflected in all sectors due to its link to production processes, which led to doubling the operational cost and record levels of inflation.

In this report, we review the global energy crisis and Saudi Arabia’s sagacious decisions that have contributed to achieving a rebalanced market.

Beginning of the crisis

The current energy crisis began with the spread of drought in many countries around the world, which led to a decrease in the water level in dams. This resulted in a decline in the amount of electricity generated from hydroelectric plants, and that in turn led to the use of more gas, coal, and fuel oil.

The crisis multiplied due to the political situations, most notably the Russian-Ukrainian crisis, especially since the political, military and oil escalation between the West and Russia reached its height. In addition, Moscow has been considered a crucial figure in the global energy market as it has the largest reserves of natural gas, and is one of the major oil