Saudi Arabia calls for emergency oil exporting countries
Washington … News time
Saudi Arabia calls for emergency oil exporting countries While US President Donald Trump has called for a 10.5million barrels a day production in order to stabilize prices in the global oil market. Oil demand and consumption have dropped significantly following the outbreak of coronavirus around the world, which has led to a significant drop in the global market. In the meantime, the agreement between oil-exporting countries OPEC and Russia-led non-OPEC countries has cut oil production. And Russia unilaterally announced its withdrawal from the OPEC Plus agreement.
The Saudi Press Agency (SPA) issued an official statement Thursday. It said Saudi Arabia has called for an urgent meeting of OPEC Plus and a group of other countries to restore balance in the oil market through a transparent deal. According to a Wall Street Journal report, Saudi Arabia wants oil producing countries in the continent – Canada, Mexico and other countries in Group 20 – to cut their production.
US President Donald Trump said in a tweet earlier Thursday that I had spoken to Saudi Arabia’s Crown Prince Mohammed bin Salman on the telephone. He has spoken to Russian President Vladimir Putin. I hope and expect that they will agree 10.5 million barrels reduction in oil production. Then they will be ready to cut even more output. If that happens, it will be a good omen for the oil and gas industry. He then wrote in another tweet that production could be up to 10.5 million barrels per day. This will be good news for everyone. However, the Kremlin later denied reports that Russian President Vladimir Putin had made any contact with Saudi Crown Prince Mohammed bin Salman. According to Interfax News Agency, President Putin’s spokesman Dmitry Peskov said no, there was no discussion.
It is to be noted that Saudi Arabia has increased its daily production of oil by 10.2 million barrels with Russia after the end of the OPEC Plus deal in Vienna on March 5. However, analysts have expressed skepticism about President Trump’s proposal to cut oil production by half a million barrels a day. And they say the suggestion is unrealistic. Robin Mills, chief executive officer of Qamar Energy, a consulting firm, has said that I am skeptical about the volume cut. One to one million barrels a day accounts for half of OPEC’s total output. Daily production of OPEC member countries was 10.2 million barrels a day.
It should be noted that US oil firms are being affected the most due to a significant drop in prices in global oil markets. The main reason for this is that their production cost is the highest in the world. US companies want to maintain the price per barrel of oil in the global market between $ 43 and $ 55. In comparison, Saudi Aramco’s production cost is much lower, and its cost per barrel is only $ 3. President Trump has not made it clear in his tweets that any country other than Saudi Arabia and Russia should cut their daily output, but Saudi Arabia’s position on this issue is very clear. It says production cuts should be fair and all countries should reduce their production volume.
