Saudi Arabia’s foreign minister said the kingdom can’t do much more to calm oil markets, implying that the world’s top crude exporter has no plans to slow down its steady output growth.
During a panel discussion at the World Economic Forum in Davos, Switzerland, Prince Faisal bin Farhan remarked, “As far as we know, there is no oil scarcity.” “While we transition to a more sustainable future, we must ensure that there is enough electricity on the market.” “The kingdom has given it its all.”
Prince Faisal was responding to a query about what the United States might be able to provide Riyadh in exchange for cruder. The US has put pressure on Saudi Arabia and other OPEC+ members to pump more quickly. His comments echoed those of Saudi Energy Minister Abdulaziz bin Salman, who said earlier this month in an interview that rising fuel prices were caused by a refinery shortfall.
Prince Faisal remarked, “It’s a lot more involved than just sending barrels to the market.” “In our opinion, oil supply is currently fairly balanced.”
Oil prices have climbed by more than 70% in the last year, to approximately $110 per barrel, first as demand recovered after the coronavirus outbreak and then when Russia invaded Ukraine.
OPEC and its partners, a 23-nation group led by Saudi Arabia and Russia, are raising monthly oil production by 430,000 barrels. The United States and Japan, two major consumers, have asked the OPEC+ cooperation to increase supply more quickly. Many members are pumping below their quotas, and the group is currently falling short of its monthly goal.
Gasoline and diesel pump prices in the United States have risen to record highs in recent weeks, boosting inflation and putting pressure on US President Joe Biden ahead of the mid-term elections in November.
According to Saudi Arabia and the United Arab Emirates, fuel prices have risen considerably in recent years due to a lack of investment in refineries around the world. They believe that pumping more oil won’t help the market because refineries are already practically full.