US official will go to Riyadh to stabilize the oil market

US, WASHINGTON (ORDO NEWS) — The United States believes that Saudi Arabia is overwhelming the world oil markets, thereby exacerbating the global economic crisis.

In order to intensify efforts to stabilize the market, the United States intends to send a high-ranking official of the Ministry of Energy to Riyadh, Reuters reports citing authorities.

According to the agency, an official from the Department of Energy will work closely with officials from the US Department of State and the energy attache for several months.

Oil prices have almost halved since the beginning of March amid a slowdown in market demand due to the outbreak of coronavirus and the collapse of the OPEC + deal.

On March 6, the countries of the alliance could not agree on either changing the parameters of the deal to reduce oil production, or to extend it.

In particular, Russia proposed to maintain the existing conditions, and Saudi Arabia – to further reduce oil production. As a result, from April 1, restrictions on oil production in the member countries of the former alliance are lifted.

In this case, the media after the failure of the OPEC + negotiations began to write about the beginning of a price war of manufacturers. So, there were reports that a number of OPEC countries began to offer their customers discounts for April.

Moreover, Reuters wrote that Saudi Arabia is trying to oust Russian oil from its main markets, offering instead its own at a lower price.

At the same time, Saudi Arabia officially announced the increase since April of oil supplies to 12.3 million barrels per day, which is 300 thousand barrels per day higher than the production capacities of the kingdom.


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