G7 Price Cap Adding to Market Uncertainty: Saudi Energy Minister

The G7 oil price cap is “fanning uncertainty” according to Saudi Energy Minister Prince Abdulaziz bin Salman in a Bloomberg tv interview after the OPEC+ meeting.

• “The lack of details and the lack of clarity” about how the price cap will be implemented add to the sense the coming two months will be “a period of uncertainty,”
• “We don’t see what will be the reaction of the market or the participants,” he said.
• The EU agreed yesterday they are supportive of a price cap but the final details of such a cap still need ironed out. The G7 group hope that keeping Russian oil on the market will avoid market tightness but in doing so want to try and limit the Kremlins revenue.
• “Again, our hope that the world economy and the trajectory for the world economy would become clearer and brighter,” he said. Policy is “not a one-way street,” he said.
• “I’ve been 35 years in this business and I have yet to see a situation compared to this situation.” Bin Salman added.