Saudi Arabia outlines what it will do for oil output
Saudi Arabia is ready to increase oil production to its maximum of 13 million barrels per day but does not have the capacity to pump out more, Crown Prince Mohammed bin Salman said during his address at the US-Arab summit in Jeddah on Saturday.
“The kingdom has announced an increase in its production capacity level to 13 million barrels per day, after which the kingdom will not have any additional capacity to increase production,” he was quoted as saying by UAE’s newspaper The National.
The crown prince also said that the global community should join forces to support the worldwide economy, but noted that unrealistic policies regarding energy sources would only worsen the situation.
“Adopting unrealistic policies to reduce emissions by excluding main sources of energy will lead in coming years to unprecedented inflation and an increase in energy prices and rising unemployment, and a worsening of serious social and security problems,” he stated.
Mohammed bin Salman’s words come a day after his talks with Joe Biden, who was in Saudi Arabia on his first visit as US president, and urged the kingdom to increase oil production in order to reduce global reliance on supplies from Russia.
Commenting on his trip to the kingdom, Biden said Saudi Arabia’s “energy resources are vital for mitigating the impact on global supplies of Russia’s war in Ukraine.”
Saudi Arabia, one of the globe’s largest oil exporters and the leading producer within the Organization of the Petroleum Exporting Countries (OPEC), currently pumps out more than 12 million barrels of oil per day. The kingdom previously said it plans to reach production capacity of 13 million barrels per day by 2027. The Crown Prince did not reveal whether the timeframe for the boost in capacity has changed.
Following the start of Russia’s military operation in Ukraine, the US and other Western nations have stepped up sanctions on Moscow, calling, among other things, for a boycott on Russian energy supplies. The US stopped importing Russian oil earlier this year, and the EU placed a partial embargo on Russian fuel last month.
Washington is now planning to set a price cap on the Russian commodity, and the US Treasury Secretary Janet Yellen is currently in Asia attempting to garner support for the scheme. The US is especially eager to secure the participation of China and India in the price cap mechanism, as both countries have not only refused to sanction Russia over the Ukraine conflict, but have recently stepped up purchases of Russian oil.
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