According to OPEC, the oil markets are so askew at the moment that adding capacity would fail to materially stave off high prices.
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, has said there are “physical impediments that no producer can solve” at work right now in the oil market, according to the Financial Post/Bloomberg.
The move shows OPEC posturing up at a time when U.S. lawmakers have been rushing to try and solve the problem of exploding gas prices. Bin Salman’s comments come at a time when exports out of Russia, a major player on the global oil and gas stage, have been disrupted.
“And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.” Rev. 6;6
“There is no refining capacity commensurate with the current demand and the expectation of the demand in the summer,” Bin Salman said this week.
Bahrain’s oil minister commented this week: “There’s no new capacity coming. Even if you produce more crude, there isn’t demand for it, there aren’t any more refineries.”
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