Climate policies could spark an 'even worse' energy crisis, Saudi finance minister says

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Saudi Arabia's finance minister has told CNBC that an 'even worse' energy crisis could be triggered if the world is not careful with its climate policies.

Al-Jadaan said the kingdom doesn't want oil prices too high or low.

"I don't want a price that is too low, which then will cripple investments and cause a serious energy crisis," he said. He added that "unintended consequences" of policies focusing on renewables in places like Europe hadA "balanced" oil price is one that is good for producers and allows them to continue investing in supply, but does not derail the world's recovery from a "very devastating Covid-19 crisis," he said.

Saudi Minister of Finance Mohammed Al-Jadaan speaks during a meeting of Finance ministers and central bank governors of the G20 nations in the Saudi capital Riyadh on February 23, 2020.Separately, al-Jadaan also said he is concerned about inflation, but not stagflation.

He said energy price rises should be watched carefully, and "people would need to rethink what have we done to cause this shortage … of supply, and try to correct it." However, he added that the problems are unlikely to be long term ones, and could be resolved in one to two years.

 

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