Riyadh has denied statements about the desire to undermine shale oil production
The statements about the desire of Saudi Arabia to end producers of shale oil are incorrect, Riyadh sought to reduce oil production and balance the market, said the Minister of foreign Affairs of the Kingdom, Prince Faisal bin Farhan al Saud.
"His Highness confirmed that the position of the Kingdom regarding shale oil extraction is well known: it is an important source of energy, the Kingdom has sought larger reduction in oil production and the achievement of market balance that meets the interests of producers of shale oil in spite of the statement made by Russia, and its desire to keep prices low to have an impact on the production of shale oil ", - said the head of the Ministry.
according to His statement, " Saudi Arabia hopes to correct Russia's decision on an urgent meeting, which the Kingdom called for the participation of the countries-participants of the agreement of OPEC and the group of other countries to obtain a fair contract, which would restore the desired balance in the oil markets and energy markets more endangered ".
Since early March, oil prices fell by almost 2 times due to the slowdown in demand in the market amid pandemic coronavirus, as well as the exhaustion of the OPEC agreements . The sixth of March of participating countries of the Commonwealth are unable to come to a consensus about changing the parameters of the contract, to extend it failed.
Russia insisted on maintaining existing conditions, but Saudi Arabia wanted to further reduce the development. In the end, With the first of April, the limits on oil production in the countries of the former Commonwealth shot.
After the failure of negotiations, OPEC media began to write about the start of a price war manufacturers. At the same time Saudi Arabia has officially said about the build-up of supplies to 12, 3 million barrels per day, which is 300 thousand barrels per day higher than its production capacity. To reach this target Riyadh could from the inventory.
Press Secretary of the President Dmitry Peskov declared that the Russian Federation and Saudi Arabia are waging price wars, but there is an adverse global economic situation.