Saudi Energy Minister Calls for Stable Energy Sector During Russia Visit

The Call for Energy Stability

Saudi Arabia's Minister of Energy, Prince Abdulaziz bin Salman Al Saud, has met his Russian counterpart in St Petersburg and called for stability in global energy markets as OPEC+ grapples with disruptions caused by the wars in Iran and Ukraine, which have sent oil prices skyrocketing.

OPEC+ Challenges

OPEC+ has been mired with unprecedented challenges, with slashed oil exports, and the United Arab Emirates, an OPEC powerhouse for almost 60 years, left the oil cartel in April.

Uncertainty in the Energy Sector

“The situation we’re going through now does make a point here, which is the world needs every molecule of energy, and every form of stabilisation to this energy, because without energy security, you will lose sustainability,” the minister said.

“There are so many moving parts, there are so many unknowns, there are things that you think have become a reality, but then you wake up the next morning, and the reality is no longer a reality.”

Russia's Low Oil Production

Russian counterpart and Deputy Prime Minister Alexander Novak echoed his views, adding that OPEC+ was able to offset global changes in the energy sector.

Novak also mentioned that Russian oil production has fallen since the start of the year, blaming the decline on unplanned maintenance at refineries.

Future Outlook

Reuters reported that Saudi Arabia, Russia, and five other OPEC+ countries would likely agree to a further hike in their output target for July when they meet on Sunday, quoting unnamed sources.