Saudi Arabia willing to pump more oil if global energy crisis worsens

Saudi Arabia willing to pump more oil if global energy crisis worsens

Saudi Arabia’s energy minister has signalled a willingness to pump more oil if the global energy crisis worsens, while describing this month’s decision by the Opec+ cartel to cut crude supply during a period of high prices as a “mature” decision.

Prince Abdulaziz bin Salman said the move to produce less oil from next month, which has caused a rift with the US, was necessary to provide a bigger spare capacity buffer if sanctions on Russian exports, or any other unforeseen events, led to a major drop in global supply.

“You need to make sure you build a situation where if things [get] worse you have the ability to [respond],” Prince Abdulaziz, who also chairs the oil producers’ group, told the Future Investment Initiative investor conferencein Riyadh. “Running out of capacity has a much dearer cost than what people can imagine.”

The Opec+ production cut, announced this month, pushed oil prices higherjust as much of the world was struggling with soaring energy costs and rising inflation. The decision by its member countries, which includes Russia, provoked a fierce backlash from the White House, which accused the cartel of helping to prop up Russia’s war in Ukraine.

Prince Abdulaziz used the onstage interview to present