Saudi energy leader Prince Abdulaziz bin Salman criticized countries’ use of emergency oil reserves to manipulate prices, and warned of further difficulties for energy markets in the event of long-term shortages.
The comments come as President Biden this year approved the historic use of the U. S. Strategic Petroleum Reserve. The U. S. has released 180 million barrels of oil since April, and this month the release of 14 million barrels was announced. pressure on oil markets, Amrita Sen of Energy Aspects said last week, because that’s “not what [reserves] are meant to be used for. “
Emergency materials are now declining, with the SPR experiencing its lowest oil levels since 1984, Forbes reported in September. The releases may also lead to a shortage of sources in the future, the Saudi energy leader warned.
“It is my deep duty to convince the world that the loss of emergency reserves may be painful in the coming months,” the prince told a convention on Tuesday, according to Reuters.
This comes as Saudi Arabia and other oil-producing countries plan to reduce oil production. OPEC said it would cut oil production by 2 million barrels a day starting in November, despite Biden’s call to increase output to keep energy costs in check.
But those cuts are mandatory to address value distortions in the electricity market, according to OPEC officials. And despite accusations that Saudi Arabia has chosen to side with Putin in his energy war against the world, the country has opted to be the main party “more mature” in its break with the United States, the prince added.
Other nations have banded together in defense of Saudi Arabia. Turkey’s foreign minister told U. S. leaders to avoid “harassing” Saudi Arabia over production cuts, and Indonesia’s finance minister said Western economic sanctions against Russia, such as the Russian oil value cap plan, were creating uncertainty for commodity exporters. which influenced the production cut in the first place.