US, WASHINGTON (ORDO NEWS) — In the price war with Russia, Saudi Arabia announced that it would expand its oil exports to a record 10.6 million barrels (almost 1.7 billion liters) a day from May. The kingdom is increasing exports by 600,000 barrels a day, a representative of the Ministry of Energy in Riyadh told the state news agency SPA.
This will put the oil price hit by the coronavirus crisis under further pressure.
The announcement of Saudi Arabia was preceded by a dispute with Russia . At the beginning of March, Russia had refused to comply with an Opec decision and to agree to a common reduction in funding rates.File Reuters
The international oil cartel wanted to cushion the slump in demand in China. As a result, Saudi Arabia’s Crown Prince Mohammed bin Salman, who heads the opec de facto, has declared an open price war to Russia.
The conflict between the two oil powers caused the oil price to plummet in the short term . However, the coronavirus pandemic is also causing a severe economic downturn worldwide and thus a falling demand for oil.
At the start of the week, the crude oil price had dropped to its lowest level in 20 years. The price of a barrel (159 liters) of the North Sea type Brent fell to $ 23.03 – a price drop of almost eight percent.
In particular, the United States are of the falling crude oil prices affected. The American fracking companies are suffering losses as a result of the price war. US President Donald Trump said on Monday on Fox News, “People in the oil and gas business are really suffering.” He would therefore speak to the Russian President Vladimir Putin shortly about the oil price. “Russia and Saudi Arabia are fighting and making the price of oil fall,” Trump criticized.
Putin will “likely” ask for sanctions relief, the President said. He did not yet know what the answer would be. The United States had sanctioned Russia for the Nord Stream 2 pipeline, which is supposed to bring more Russian natural gas to Germany.
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