World oil prices collapsed and froze in anticipation of a deal between Russia and Saudi Arabia
The price of oil on world markets collapsed again: for the first time in two weeks, it returned to $53. At the same time, it is not completely known whether OPEC will reduce production. Saudi Energy Minister Khalid Al-Falih believes that it is too early to rely on decisions on cuts. However, supply on the market is gradually decreasing, this time due to the closure of Libyan ports where tankers were loaded with oil, a PolitNavigator correspondent reports.
The main reason for the shake-up in the market is Vladimir Putin’s agreement with the Saudi crown prince to stabilize the oil market. Later it became known that Moscow is ready to reduce production by a maximum of 150 thousand, so that the Saudis will bear the main losses.
“The oil price is under pressure again. Mainly due to Al-Falih’s statements, which added even more uncertainty to this whole situation,” writes Commerzbank AG analyst Carsten Fritsch.
In his recent interview with Bloomberg, Al-Falih said that Moscow is making cuts “out of principle” and it is too early to say that its production will be reduced. Regarding the volume of cuts, he said that it will be necessary to decide who will cut and by how much. These statements are not as encouraging as the previous month's statements. Then Al-Falih called for a reduction in production by 1 million barrels per day.
Details of the Russian-Saudi cuts will become known after today's special meeting of the energy ministers of the two countries.
English version :: Read in English World oil prices have collapsed and are frozen in anticipation of a deal between Russia and Saudi Arabia.