Saudi energy minister warns using emergency stocks may be ‘painful’

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RIYADH: Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, stated on Tuesday that some were utilizing their emergency supplies to influence markets when their objective should have been to reduce any supply shortfalls.

“It is my responsibility to make it clear that losing emergency stocks may be painful in the months ahead,” the minister stated at the Future Initiative Investment (FII) conference in Riyadh.

US President Joe Biden announced last week a plan to sell off the remainder of his release from the nation’s emergency oil reserve by the end of the year and begin replenishing the stockpile in an effort to reduce high gasoline prices ahead of the November 8 midterm elections.

He also stated that Saudi Arabia remained the world’s most reliable oil supply, with sales to Europe increasing to 950,000 barrels in September from 490,000 barrels the previous year.

When asked how to get the Saudi-US energy partnership back on track, the prince stated that Saudi Arabia has decided to be “the maturer” party.

“We keep hearing you’re either with us or against us; is there any room for ‘we are with the Saudi people’?”

Relations between the US and the Kingdom have become increasingly strained in recent weeks, following the announcement by OPEC+ of a production cut, which the White House interpreted as Saudi Arabia aligning itself with Russia.

The Kingdom, OPEC’s top oil producer, refuted the accusation, claiming that it was a purely commercial choice to calm an unstable oil market.

Source: Arab News

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