Saudi Energy Minister Prince Abdulaziz bin Salman warned from imposing a price cap on Saudi oil exports. He said: “if a price cap were to be imposed on Saudi oil exports, we will not sell oil to any country that imposes a price cap on our supply.” He added that Saudi Arabia will reduce oil production in an interview with Energy Intelligence published on Tuesday. He reiterated that OPEC+ has made every effort and succeeded in bringing significant stability and transparency to the oil market, especially compared to all other commodity markets. “The Nopec bill does not recognize the importance of holding spare capacity and the consequences of not holding spare capacity on market stability. “Nopec would also undermine investments in oil capacity and will cause global supply to fall severely short of future demand. The impacts will be felt all over the world on producers and consumers alike, as well as on the oil industry.” Nopec legislation and extending the price cap add new layers of risk and uncertainty at a time when clarity and stability are most needed, he said. “Spare capacity and global emergency stocks are the ultimate safety net for the oil market in face of potential shocks.” I have repeatedly warned that global demand growth will outpace current global spare capacity, while emergency reserves are at a historic low. Saudi Arabia have proactively embarked on expanding the capacity to 13.3 million b/d by 2027. Prince Abdulaziz said: “The expansion is already under way in the engineering phase and the first increment is expected to come onstream in 2025.”