Information about the possible introduction of Saudi Arabia’s discounts on oil because of the failure of a number of countries in the context of the new deal OPEC+ is likely an attempt to encourage these States to fulfil their obligations rather than declare a new “price war” on the global market. This opinion was expressed to RIA “Novosti” a senior group Director for natural resources and commodities, Fitch Dmitry marinchenko.
Previously, the Agency Dow Jones, citing sources said that the Minister of energy of Saudi Arabia Abdulaziz bin Salman threatened to ignite a new price war if Angola and Nigeria do not compensate for their inability to keep commitments to cut oil production.
“In April, all saw, which can lead to “price war” in the near future no one in his right mind it will not start, rather it is an attempt to coerce countries to comply with the agreement than a real threat,” — said the expert.
As reminds RBC, June 18, in the conference of OPEC representatives from these countries stated that they are not ready to take on specific commitments to limit production volumes. In response, Saudi Arabia has signaled that it is ready to start to sell oil at a reduced price that would be detrimental to the economies of Angola and Nigeria.
Note also that since the beginning of this year on the global oil market rode several waves of falling prices for “black gold”. A negative situation was caused by a whole complex of factors: a General overproduction of raw materials, a sharp drop in demand due to the rapid spread of coronavirus infection COVID-19 (March 11, was declared a pandemic) and concerns about its impact on the global economy and the collapse of the deal, OPEC+ (officially from April 1, but in fact, after fruitless negotiations of the countries-oil producers at a meeting on March 6 in Vienna).
However, on April 12 OPEC+ agreed new dealshave, joined by 23 States. The agreement will be valid for two years, from may 1, 2020 to may 1, 2022-th. In may—June this year, the production cuts will amount to 9.7 million barrels per day (from October 2018), then — until the end of 2020 — 8 million barrels, and 6 million by the end of April 2022. New business OPEC+ was a forced reaction of oil producing countries on the situation in the market and pressure from the United States. Overall, however, it is not blocked volumes decline in global demand, besides on the market have accumulated huge reserves of raw materials.
At the meeting on June 6, the member countries of OPEC+ extended on a month — until the end of July — the period of validity of the agreement to reduce oil production to 9.7 million barrels per day.
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