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“The russian Minister of Energy was the first to declare to the media that all the participating countries are absolved of their commitments starting from the first of April, leading to the decision that the countries have taken to raise their production to offset the lower prices and compensate for their loss of returns,” he said in a statement.
The Saudi minister also denied that riyadh was seeking the collapse of the US shale industry, stating that this was instead Moscow’s intent.
“The russian statements, in this regard, particularly those made by their CEOs, are well- known and clear for all,” he explained. “It is no secret that the kingdom is one of the major inves- tors in the US energy sector.”
Still, Prince Abdulaziz appeared to signal that a deal to end the standoff was possible.
“The kingdom’s arms remain open to those who want to find a solution for oil markets, and has called for an urgent meeting of OPEC+ and a group of other countries as part of its continu- ous effort to support the global economy during these exceptional times, and in response to the wish of ... President Trump to seek market bal- ance,” he said.
neither russia nor Saudi Arabia have said how much production they would be willing to shut down under a new supply pact. however, sources told Bloomberg on April 4 that Moscow would be willing to cut output by 1mn bpd, as long as the US joined the cuts.™
Aramco delays oil pricing ahead of OPEC+ meeting
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SAUDI Arabia is delaying the release of its closely-watched monthly oil-pricing list until later this week as the kingdom spars with russia over a potential meeting of global producers that would aim to halt the collapse in crude.
State oil producer Saudi Aramco is now set to announce its official selling prices for May on Thursday, according to people with knowledge of the situation who asked not to be identified because the information is private. The OSPs, as the prices are known, were due on Sunday.
Aramco is holding off on the announcement to await signs of what may happen when suppli- ers meet Thursday to discuss crude production. The company’s media office declined to com- ment on the delay.
With the coronavirus pandemic gagging oil demand, benchmark Brent crude has plunged 48% this year. Saudi-russian diplomatic barbs, which are opening a fresh rift between the world’s two largest oil exporters, jeopardize a deal to cut output and keep crude from tumbling further.
Oil surged after the U.S. President floated the idea of coordinated production cuts
The coalition known as OPEC+ had curbed production since 2017, but limits on its members’
output expired at the end of March after Saudi Arabia failed to persuade russia to accept deeper cuts. While the Saudis have changed course and are now ramping up production to record lev- els, U.S. President Donald Trump said suppliers are open to pumping less to take 10 million to 15 million barrels of unwanted crude off the market.
The debate over new production cuts poses a challenge for the world’s most valuable listed company as it tries to decide how to price its crude. By delaying its announcement, Aramco can better gauge the amount of oil it may have available to sell next month. The postponement would also give it time to deepen its price dis- counts should an OPEC+ deal fall apart, as Ara- mco is competing for sales in a glutted market.
The kingdom’s energy ministry dictates Saudi oil output, so any decision by the Organization of Petroleum Exporting Countries, russia and other producers would determine the amount of crude that Aramco can offer customers.
refiners and traders expect Aramco to cut pricing for May due to the collapse in demand. The delay could be interpreted as an effort to put the global price war on hold and give countries more room to negotiate reductions in output.™
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