Saudi Arabia's Oil Minister Ali Naimi warned Monday that a "premature shift" from dependence on fossil fuels could add to market speculation and higher energy prices.
Speaking at an energy forum in Geneva, Switzerland, Naimi said that "this kind of price volatility not only obscures market signals needed to ensure levels of investment required to meet future demand, but can also make global economic recovery a much more difficult, more distant prospect."
Naimi, who overseas the world's largest oil reserves, said in an emailed copy of his speech sent to Zawya Dow Jones that "diminished investment in fossil fuels will impact our ability to provide the energy that will be needed when the economy turns around."
He warned that the risk of "a premature shift from fossil fuels is increased market speculation."
Saudi Arabia, the Middle East's largest economy, and other leading oil producing nations are under pressure to maintain investment in boosting capacity to help ensure prices don't return to last year's highs of more than $147 a barrel.