Amid concerns about the impact on people's lives in Japan due to soaring crude oil prices, the energy minister of Saudi Arabia, who leads the oil-producing countries, said in an interview with NHK that "the spread of the new coronavirus has not subsided." We remained cautious about the significant increase in crude oil production.
The price of crude oil, whose demand is increasing due to the resumption of global economic activity, has risen to the highest level in about seven years, and the price of gasoline etc. continues to rise even in Japan. We are working to increase production in major oil-producing countries because of concerns about the impact on economic activities.
Under these circumstances, on the 23rd, Saudi Arabia's energy minister, Abdulaziz, who leads the oil-producing countries, responded to an independent interview with NHK in the capital Riyadh.
Energy Minister Abdul Aziz said about the situation in the crude oil market, "Demand is increasing, but the spread of the new coronavirus infection has not subsided." Did not break his cautious attitude.
Regarding the Japanese government's efforts to increase production in major oil-producing countries, he said, "The essence of the problem is not crude oil. We are concerned that the soaring prices of natural gas and coal will cause an energy crisis and reduce crude oil demand. "I have," he said, and did not state his response.
OPEC (Organization of Petroleum Exporting Countries) led by Saudi Arabia and oil-producing countries such as Russia are close to each other, and future production will be discussed, and the focus will be on whether to take additional production increases.
The cautious stance of oil-producing countries in the background of accelerating the rise in crude oil prices
The rise in crude oil prices has been accelerating recently, and WTI futures prices in the New York crude oil market, which is an international indicator, temporarily exceeded $ 84 a barrel on the 20th of this month, reaching the highest level in about seven years. rice field.
In Japan, the retail price of regular gasoline as of the 18th of this month has risen to 164.6 yen per liter on the national average due to the soaring crude oil price, and it has been at the highest level for the first time in about 7 years.
Kerosene prices are also at their highest level in about seven years.
The background to the rise in crude oil prices is that while economic activities restricted by the spread of the new coronavirus have resumed in each country and demand has increased, oil-producing countries have not significantly increased their supply.
Major oil-producing countries such as OPEC (Organization of Petroleum Exporting Countries) led by Saudi Arabia and Russia have been collaborating to reduce production since May last year in order to support the price of crude oil whose demand has fallen due to the corona disaster.
Production is gradually increasing in response to the recovery of the world economy, but in this month's talks, oil-producing countries have forgotten measures to increase production more than planned.
This is because many oil-producing countries rely on oil for their national income and remain cautious about whether demand will continue to recover.
Major oil-producing countries will soon be discussing what to do with future production, and the focus will be on making significant increases in production while the rise in crude oil prices remains unstoppable.