Saudi Arabia has signaled that it will not supply oil to nations that implement a pricing ceiling on its exports. This stance came from Abdulaziz bin Salman Al Saud, the country’s Energy Minister, according to energy industry reporting.
Bin Salman stated that should NOPEC, a proposed antitrust framework targeting cartels, restrict Saudi crude sales, Riyadh would refuse to ship oil to any country enforcing a price cap on its supply. The Non-Oil Producing and Exporting Cartels Act could empower the United States to pursue antitrust actions against OPEC members and their partners.
He suggested further production reductions could follow, noting that other producers might also take similar steps. The implication is that coordinated curtailments would shift market dynamics and may trigger a broader adjustment in global oil availability.
Representatives from Riyadh describe such interventions as capable of creating an imbalance between global supply and demand for the resource. This view aligns with concerns raised by policymakers about the stability of energy markets in response to price controls.
Earlier, Ben Harris, the U.S. Under Secretary of the Treasury for Economic Policy, spoke at the American Enterprise Institute in March. The discussion focused on how officials from the United States and the European Union are jointly reviewing the functioning of the Russian price cap mechanism for petroleum products.
The declaration from the Saudi energy leadership comes amid discussions about how Western price caps on Russian crude influence the global energy balance. The price ceiling, adopted by the European Union, G7 members and Australia, became effective in December 2022. The cap was initially set at $60 per barrel and is subject to periodic review as markets evolve.