US, WASHINGTON (ORDO NEWS) — Russia and Saudi Arabia do not intend to backtrack in a price war, writes Bloomberg.
The article said that Riyadh confirmed its invariable position – the Saudi authorities denied reports of negotiations with Russia.
“There were no contacts between the energy ministers of Saudi Arabia and Russia regarding the increase in the number of countries in the OPEC + deal or the discussion of a joint agreement on balancing oil prices,” the agency quoted the Saudi Ministry of Energy as saying.
A statement by Riyadh indicates that Saudi Arabia and Russia are ready for a long price war, despite protests by OPEC members, the agency said.
“Their argument threatens to turn into the survival of the fittest according to Darwin, because of which both the allies and opponents of the two countries, including American shale oil companies, can be forced out of the market,” writes Bloomberg.
Earlier, US Secretary of State Mike Pompeo called on Saudi Arabia to “calm” the global financial and energy markets.
Disruption of the OPEC transaction +
At the beginning of March, the OPEC + countries failed to come to an agreement either to change the parameters of the agreement to reduce oil production, or to extend it.
Riyadh insisted on an additional reduction in production, but this did not suit Moscow, which proposed to maintain the current conditions.
As a result, from April 1, participants in the OPEC + transaction will not have any obligations to each other. After that, the Saudis announced that they would increase production, lower prices and offer large volumes of discounts to European customers. This led to the collapse of oil quotes in world markets. Since the beginning of the year, prices have fallen more than twice.
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