Russian President Vladimir Putin said that Saudi Arabia has initiated a waiver of the OPEC plus deal to eliminate competitors producing shale oil. Kingdom Minister of Foreign Affairs Faisal bin Farhan Al-Saud said this statement by the head of the Kremlin is вЂњcompletely devoid of truth.вЂќ
Saudi Arabia claims that the Kremlin is lying, talking about the reasons for the breakdown of the OPEC plus agreement. This was said on April 3 by the KingdomвЂ™s Foreign Minister, Prince Faisal bin Farhan Al Saud, SPA agency writes.
On April 3, Russian President Vladimir Putin expressed the view that Riyadh has withdrawn from the deal to eliminate competitors. вЂњThis, apparently, is connected with the attempts of our partners from Saudi Arabia to get rid of competitors who produce the so-called shale oil. In order to do this, the price should be below $40 per barrel. And in this sense, of course, they have a certain purpose in their well-known degrees are being achieved, вЂњthe KremlinвЂ™s website quotes Putin.
The prince called the words of the president of the Russian Federation вЂњcompletely devoid of truth.вЂќ Riyadh's position on shale oil is known: it is an important component of energy sources on the planet, the minister said. According to him, Saudi Arabia seeks to reduce production and achieve a balance in the market, which is also in the interests of shale oil producers.
Farhan Al Saud added that it was Russia, and not his country, that initiated the breakdown of the OPEC plus agreement. He called on the Kremlin to make the вЂњright decisionвЂќ at an emergency meeting of oil-producing countries on April 6.
The fall in oil prices has continued since early March. The main reason was that Russia and the Organization of Petroleum Exporting Countries could not agree on new restrictions on the level of oil production. By March 9, the price of Brent oil fell by 30% to $33 per barrel, which was the maximum daily drop since 1991, when the Gulf War began. On the evening of March 18, the price of Brent crude fell to a 17-year low of $25.4 per barrel, and on March 30, futures traded at $18.
Amid unsuccessful negotiations, Saudi Arabia, according to Bloomberg sources, decided to вЂњenter into a total price warвЂќ and increase production from 9 million to 12 million barrels per day. In addition, Riyadh squeezed out Urals Russian oil from the European market, offering to triple its own supply of Arab Light with big discounts.