Home Politics Saudi Arabia postpones the decision on oil production

Saudi Arabia postpones the decision on oil production

Saudi Arabia has reportedly pushed back a major decision on oil prices as major oil-producing countries have been talking about production restrictions for days. State oil concern Saudi Aramco is expected to decide on tariffs for crude oil exports only on Monday.

The official sales prices (OSPs) for May were initially planned to be released on April 5. With the earlier postponement, Saudi Arabia gave itself some time to reach agreements on production restrictions with other oil cartel OPEC countries and allies to prop up prices.

Due to the pervasive new coronavirus, the demand for oil has decreased. In addition, Russia and Saudi Arabia previously sparked a price war because they could not agree on further production restrictions. That caused a price drop in oil.

It would now be the third time that Saudi Arabia has pushed back the decision on prices. Among other things, the country is still talking to Mexico, which does not yet want to support agreements. On Thursday, other major oil-producing countries reached an agreement to cut production by 10 million barrels a day.

On Sunday there will be further talks about measures. The low oil prices are causing the American oil industry to be hit. The fall in prices is also causing the budgets of countries that are largely dependent on the export of oil to shrink.

Oil giants traders and customers are eagerly awaiting the OSPs that benchmark about 14 million barrels of crude oil exports from the Persian Gulf.

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