Saudi crown prince says unrealistic energy policies will lead to higher inflation

Saudi Crown Prince Mohammed bin Salman attends an Arab summit, in Jeddah, Saudi Arabia, July 16, 2022. REUTERS/Evelyn Hockstein

JEDDAH, Saudi Arabia, July 16 (Reuters) – Saudi Arabia’s Crown Prince Mohammed bin Salman mentioned on Saturday extra funding was wanted in fossil gas and clear power applied sciences to satisfy world demand, and that unrealistic emission insurance policies would result in unprecedented ranges of inflation.

The prince mentioned Saudi Arabia had introduced elevating its manufacturing capability to 13 million barrels per day by 2027 from a nameplate capability of 12 million now and “after that the Kingdom is not going to have any extra functionality to extend manufacturing”.

He was addressing a U.S.-Arab summit in Jeddah attended by President Joe Biden, who is raring to see Saudi Arabia and its OPEC companions pump extra oil to assist carry down the excessive value of gasoline and ease the best U.S. inflation in 4 many years.

“Adopting unrealistic insurance policies to scale back emissions by excluding fundamental sources of power will lead in coming years to unprecedented inflation and a rise in power costs, and rising unemployment and a worsening of significant social and safety issues,” Prince Mohammed mentioned.

The de facto ruler of the world’s prime oil exporter mentioned COVID-19 and the “geopolitical scenario” necessitated extra joint efforts to assist the worldwide financial system and that the transition to sustainable power sources required a “life like and accountable” strategy.

The summit gathered Biden with leaders from six Gulf Arab states and Egypt, Jordan and Iraq. Biden held bilateral talks with Saudi leaders on Friday in Jeddah.

U.S. officers have mentioned Biden would talk about power safety with leaders of Gulf oil producers and hopes to see extra motion by OPEC+ to spice up output, however there was unlikely to be any bilateral bulletins from the talks.

Reporting by Ghaida Ghantous and Maha El Dahan
Modifying by Mark Potter and Clelia Oziel

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