The impact of EU sanctions on Russian oil and price cap measures have yet to yield tangible results and their implementation remains uncertain, Saudi Energy Minister Prince Abdulaziz bin Salman said on Sunday. .
While the G7 countries’ cap on the price of Russian oil transported by sea came into force on December 5 to limit Moscow’s ability to finance its war in Ukraine, the Kremlin has declared that it will not respect this. measure, even at the cost of a reduction in its production.
“What is happening now in terms of sanctions and price caps being imposed, all of that has really not brought any clear results, including the measures implemented on December 5; we see uncertainty in their implementation. work,” Prince Abdulaziz bin Salman said at a forum following the country’s budget announcements in Riyadh. According to him, the reaction of Russia and the measures it might take in retaliation must also be taken into account when examining the situation of the markets in the world.
“These tools were created for political purposes and it is not yet clear whether they can achieve these political goals,” he said, referring to price caps. Saudi Arabia’s energy minister also believes China’s policy on handling the COVID-19 outbreak might also affect the oil market.
“Time is (still) needed” to measure the impact of the easing of health restrictions on the Chinese economy, he said. “Central banks are always concerned regarding managing inflation, regardless of the cost of these measures and their possible negative impact on global economic growth,” he added.
The decision by OPEC and its allies on October 5 to cut production by two million barrels per day (bpd) proved to be wise given current market developments, he also said. declared. OPEC+, which includes Russia among its members, opted at its last meeting, on December 4, for the status quo concerning its production, in a context of deterioration of the world economy and uncertainty as to the impact of the Russian oil price cap.
Prince Abdulaziz bin Salman assured that OPEC+ would continue to focus on market stability in 2023. He also said he insisted that each member of the alliance take their part in decisions. “Consensus has positive market implications,” he said.
The impact of sanctions
on Russian oil and capping measures
prizes have not yet produced tangible results and their
implementation remains uncertain, the Minister said on Sunday
Saudi Energy Minister, Prince Abdulaziz bin Salman.
While the capping by the G7 countries of the price of
Russian oil transported by…