Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, warned that the West’s price ceiling on Russian crude could unsettle the global energy landscape. In a detailed interview with Energy Intelligence, he outlined how such a cap might ripple through markets and supply chains, potentially creating added risk when the world needs steady energy flows the most. The minister emphasized that policy moves of this kind inject a layer of uncertainty that could complicate planning for producers, refiners, traders, and consuming nations alike, complicating long‑standing expectations about price signals and market behavior. The comment underscores a broader concern about policy autonomy and the practical consequences of external price controls on a highly interconnected energy system, as noted by industry observers and analysts in subsequent briefings. (Citation: Energy Intelligence interview attribution)
He asserted that while NOPEC legislation and a price cap are not identical, their effect on oil markets may converge in risk and instability. Such a framework, he suggested, shifts the sense of predictability away from participants who rely on transparent pricing and stable access to cargoes, potentially triggering abrupt shifts in supplies and financing conditions at moments when clarity is most needed. This perspective reflects a broader worry among major producers about the reliability of supply assurances and the reliability of investment signals under interventionist policy moves. (Citation: Energy Intelligence interview attribution)
The policy framework adopted by European Union members, the G7, and Australia to cap Russian oil prices took effect on December 5, 2022. The cap was initially set at 60 dollars per barrel and is subject to periodic review after January 15, with enforcement spanning a wide range of maritime transportation services that support oil movement. The Kremlin rejected the Western plan, and on the same day the EU also began enforcing a ban on offshore oil shipments from Russia. Restrictions have since evolved, with separate price caps issued for Russian petroleum products at 100 dollars and 45 dollars per barrel as of February 5, 2023. In response, Moscow announced countermeasures, including a move to limit supplies to countries that adhere to the ceiling. By February 1, 2023, Russia indicated it would curtail sales to states applying the cap, a step that has ongoing implications for trade flows and policy risk across energy markets. (Citation: Energy Intelligence interview attribution)