21.10.202110:51 Forex Analysis & Reviews: Saudi Arabia said any additional oil from OPEC would do little to bring down gas prices

Saudi Arabia Energy Minister Prince Abdulaziz bin Salman said any additional oil from OPEC would do little to bring down gas prices. He expressed this view during the Indian Energy Forum on Wednesday, adding that the problem is not the availability of crude oil.

"Even if we made it available in tons and tons, who's going to burn it ?," Abdulaziz said. "Who is in need of it? And are they in need of crude or in need, for example, of gas? "

In any case, gas and coal futures hit records these past two weeks, mainly due to fuel shortages in Europe and Asia. Oil also increased in price as some producers switched to crude, but it is less volatile because OPEC committed to a steady increase in production.

Abdulaziz also said oil demand could rise by 500,000 to 600,000 b/d if the winter in the northern hemisphere turns out colder than usual.

But any further increase must be contained because many gas generators are unable to easily switch to oil, which is a dirtier fuel.

OPEC has pledged to increase daily production by 400,000 barrels, but just recently, US and Japan called for a ramp up, explaining that there is a need for more oil as prices have risen by as much as 65% over the year. They mentioned that consumers are not satisfied with this.

But Abdulaziz was skeptical over this and said he is disappointed because oil is being manipulated to solve real problems that have not yet been addressed.