Saudi Arabian Energy Minister stated that the Kingdom does not plan to impose an oil embargo akin to that of 1973 in response to predictions that it may cut its supply of crude for global markets by 500,000 barrels per day (b/d) amid rising tension over the killing of critic of the Saudi regime Jamal Khashoggi, Reuters reported.
“There is no intention,” Saudi Energy Minister Khalid al-Falih told Russia’s TASS news agency when questioned on a possible repeat of the oil embargo.
“This incident will pass. But Saudi Arabia is a very responsible country, for decades we used our oil policy as a responsible economic tool and isolated it from politics,” Falih said.
The disappearance and reported death of Saudi journalist Jamal Khashoggi in the Saudi Consulate in Istanbul sparked strong reactions from US lawmaker who called for the imposition of sanctions on the Kingdom. Saudi Arabia pledge to meet any penalties with “bigger measures”.
US President Donald Trump’s administration has maintained a more cautious stance on the issue.
In 1973, a consortium of oil-producing countries implemented an oil embargo on western countries (including Canada, Japan, the Netherlands, Britain and the United States) in support of Israel in its war with Egypt, causing oil prices to spike.
“If oil prices will go too high, it will slow down the world economy and would trigger a global recession, and Saudi Arabia has been consistent in its policy. We work to stabilize global markets and facilitate global economic growth. That policy has been consistent for many years,” Falih said.
Saudi journalist and general manager of state-owned Al Arabiya channel, Turki Aldakhil, warned last week that sanctions on Riyadh could result in oil jumping to $200 a barrel and global economic disaster.