Saudi Arabia May Withdraw from the Oil Alliance with Russia
OREANDA-NEWS. The Wall Street Journal, citing informed sources, reports that Saudi Arabia is considering withdrawing from a four-year alliance with Russia on oil production due to weakening global demand, which happened because of the outbreak of a new type of coronavirus in China.
According to the publication, representatives of Saudi Arabia, Kuwait and the UAE will hold talks to on joint reduction of oil production by another 300,000 barrels per day.
It is noted that Riyadh expresses concern about the negative impact of coronavirus on oil demand, while Moscow believes that there is no reason for an additional reduction in production. Russian officials point out that business in China is recovering, and the epidemic has a limited impact on oil demand.
A meeting of representatives of the countries participating in the OPEC+ agreement on reduction of oil production is scheduled for March 5–6.