Oil’s stability relative to natural gas and coal underscore that OPEC+ is doing a good job balancing supply and demand, said the energy ministers of Saudi Arabia and Russia.
While crude has jumped to a three-year high above $80 a barrel, the increase has been nothing compared to volatility seen with gas and coal prices, Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday. He reiterated that the OPEC+ cartel, led by Riyadh and Moscow, should stick with gradual production increases, despite calls from many traders and even the White House for it to move faster.
“We have done a remarkable job,” he said during the Russian Energy Week conference. “Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC has done.”
Gas futures in Asia and Europe have soared by more than 150% since the end of June, while coal’s doubled. Brent crude, by contrast, is up 12%.
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