Web-conference of energy Ministers of the countries – oil producers in the OPEC format+ moved from the 6th to the 9th of April. According to sources Reuters, the meeting was postponed at the initiative of OPEC and Russia.
According to the Agency, about the postponement of the conference became known against the background of intensified conflict between Moscow and Saudi Arabia in connection with the cancellation of the transaction by OPEC regarding the reduction of oil production.
So, on April 2, the President of the United States Donald trump announcedthat Saudi Arabia, Russia and the United States three largest oil producer in the world – have agreed on a new reduction of hydrocarbon production. According to trump, we are talking about lower production levels at 10-15 million barrels per day.
The next day this information was confirmed by the President of Russia Vladimir Putin. According to him, the reduction should occur from the level of oil production in the first quarter of this year.
Meanwhile, Putin has accused Saudi Arabia in the termination of the transaction “OPEC plus” that have provoked the most serious collapse in oil prices over the past decade. Minister of Saudi Arabia said that the Russian President is “completely devoid of truth”.
The fall in oil prices continues since the beginning of March. The main reason was the fact that Russia and OPEC failed to agree on new restrictions the level of oil production. By 9 March the price of Brent crude oil has fallen by 30% – up to $33 per barrel, the biggest daily drop since 1991, when the war began in the Persian Gulf. On 18 March, the price of Brent crude oil has fallen to a 17-year low – $25,4 per barrel, 30 March futures traded at $18.
On the background of unsuccessful negotiations Saudi Arabia, according to sources Bloomberg, decided to “join the total price war” and increase production from 9 million to 12 million barrels per day. In addition, Riyadh has pushed Russian oil Urals on the European market, offering triple the supply of Arab Light grade with big discounts.
This led to the fact that, as of 31 March, the price of Urals dropped to the lowest level since 1999 – $13 per barrel. As noted by “Radio Liberty”, the Urals in Europe became cheaper fuel.
1 APR prices on the oil market began to rise amid expectationsthat Russia and Saudi Arabia will reduce production volumes.
On 3 April, after it became known about the preliminary arrangements largest oil producers to reduce production, oil benchmark Brent crude rose by 16.3% to us $of 34.83 per barrel.