Higher oil refining margins, rather than simply the price of crude, are driving fuels costs for consumers, United Arab Emirates Energy Minister Suhail al-Mazrouei said on Tuesday, adding that figures show the oil market is balanced.
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“Extreme volatility is not because of supply and demand, it’s because some don’t want to buy certain crudes and it takes time for traders to move from one market to another,” he said, alluding to efforts to bypass Russian crude.
“The idea of trying to boycott certain crude is going to be risky regardless of the motives behind that.”
Oil prices were boosted last week after the European Commission proposed a phased embargo on Russian oil. However, the approval has been delayed amid requests from Eastern European members for exemptions and concessions.
Asked about the US bill (NOPEC) that could open members of the Organization of the Petroleum Exporting Countries and its partners to antitrust lawsuits for orchestrating supply cuts that raise global crude prices, Mazrouei said it was not wise to raise the issue now.
“I’m not concerned about it for a basic reason: There is a debate on NOPEC in the US. We need to wait and see,” he said.
If signed into law, the US attorney general would gain the ability to sue the group or its members, such as Saudi Arabia, in federal court.
Other producers like Russia, which works with OPEC in wider group known as OPEC+ to withhold output, could also be sued.
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