Saudi Arabia Will Increase Oil Supplies Because Of Ukraine
The Government of Saudi Arabia stands ready to increase the supply of oil significantly due to the political crisis on the territory of the Ukrainian state.
Information about such a decision of the Government of Saudi Arabia has appeared on the pages of the business periodical International Business Times, which indicates the head of the Ministry of Petroleum Industry of Saudi Arabia Ali Al-Naimi as the source of this decision.
Al- Naimi said that the Saudi government was ready to increase significantly oil supply to the world markets if Russia began to decline the exports of “black gold” into the European states, and militants from groups with pro-Russian sentiment would continue their activities associated with destabilization of the political situation in Ukraine. According to the oil minister of Saudi Arabia, the decision was reviewed by the state government due to the fact that the above events could have an impact on the deficit of oil on the world markets.
According to the head of the Oil Ministry, the Saudi government is ready to compensate in full any shortfall that may arise in connection with the above terms. However, according to Al-Naimi, today it is too early to say that there are similar problems on the world markets. According to the Minister, at this stage of the event the level of oil resources continues to remain fairly stable in the world markets and there are no significant reasons for fundamental changes to date.
Al- Naimi also said that the concerns about oil supplies from the Russian Federation to the territory of Ukraine and European countries had arisen in connection with military operations in the eastern regions of Ukraine, which were triggered by militants of the armed groups, having pro-Russian sentiment. According to Al-Naimi, the military actions, which began in Ukraine, strengthened significantly the already strained relations between the Russian Federation and the leadership of the European countries. Al-Naimi also said that as a result of the emerged fighting actions in the eastern regions of Ukraine the prices for Brent Crude Oil stick the figure $108 per barrel after the price of the same brand of oil rose to an annual maximum – 112.39 USD per barrel on March, 3rd.
In addition, Minister Al-Naimi said that oil resources increasing, delivered from Saudi Arabia might reduce its value on world markets to the level of 100 dollars per barrel.
Let’s recall that these solutions were considered by the government of Saudi Arabia in connection with the holding of a referendum to determine the status of the region by pro–Russian movement activists in Donetsk and Lugansk regions. The holding of this referendum raises concerns associated with the aggravation of the political crisis in Ukraine and further escalation of the situation.
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