Former Saudi oil minister says world reaching third oil crisis

Speculation is contributing to higher world oil prices, not imbalances between supply and demand, according to Saudi Arabia’s former minister of oil, Sheik Ahmed Zaki Yamani, in a published interview.

Asked if current conditions are approaching a third oil crisis, Yamani said, “Yes, I think so. This is a new oil crisis. Oil prices are very high.” He said that the two earlier oil crises of the 1970s were caused by “a lack of supply, but now it is because of problems with the price-setting system” in the futures market.

OGJ