Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud has emphasised the Kingdom’s keenness on the stability and balance of oil prices, following volatility in energy and commodity markets due to the Russia-Ukraine crises.
The Saudi Crown Prince reiterated the Kingdom’s commitment to the OPEC+ agreement with Russia, during a phone call with France’s president Emmanuel Macron.
OPEC ministers intend to stick to modest production increases each month, as planned, despite the recent surge in oil prices, S&P Global shared in a recent statement.
Oil, commodities markets react to Russia-Ukraine crisis
Oil soared as energy and commodity markets were thrown into a state of disarray after Western nations unleashed more sanctions to isolate Russia, following its conflict with Ukraine.
“Oil supply was already struggling to meet the demand recovery from the reopening of economies, and any disruptions to flows from the world’s No. 3 producer could sharply exacerbate the tightness,” Bloomberg reported.
“Futures in London jumped more than 7 percent before giving up some gains to trade near $103 a barrel. China and other buyers have paused purchases of Russia’s flagship Urals grade, while some Asian customers are frantically trying to secure more Middle East crude.”
Additionally, Brent crude was up 3.76 percent at $101.61, moving upwards to $105 from the $100 level last week, before paring gains.
The OPEC+ alliance will meet next on Wednesday, March 2 to decide on April output levels.
Meanwhile, US gold futures climbed 1.1 percent to $1,908.30, with spot silver up 0.4 percent to $24.28 per ounce. Gold is often hedged against inflation, marking times of financial and political uncertainty.
Top UAE official calls for diplomatic solution to Russia-Ukraine conflict
Sharing a call for “security and stability”, the UAE has rejected military solutions to the Russia-Ukraine conflict, confirming the nation’s position on the “basic principles of the United Nations, international law, state sovereignty.”
Sharing his official stance on twitter, the diplomatic advisor to the UAE President, Dr Anwar Gargash, said: “The world is facing a difficult test and severe polarisation imposed by the Ukrainian crisis, which threatens the foundations of the international community and increases the factors of instability.”
Dr Gargash added: “From our experience in a region full of crises, we believe that political solutions and creating balances that enhance security and stability are the best way to confront crises and limit their effects.
“We believe that alignment and positioning will only lead to more violence, and in the Ukrainian crisis, our priorities are to encourage all parties to adopt diplomacy and negotiate to find a political settlement that ends this crisis.”
Western nations agreed to continue economic and financial sanctions on Russia, excluding Russian lenders from the SWIFT bank messaging system targeting the central bank’s foreign reserves.
British multinational oil and gas firm BP Plc has also moved to dump its shares in oil giant Rosneft PJSC, taking a financial hit of as much as $25bn, Bloomberg reported.
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