Russia and Saudi Arabia managed to agree positions on the issue of freezing of oil production, told “Interfax” a diplomatic source in the capital of Qatar Doha. According to him, the parties managed to agree on a key question: Saudi Arabia will make a decision on freezing of excluding Iran’s position.
“Today was contact the representatives of Saudi Arabia and Russia, during which the country reached consensus on the issue of freezing of oil production”, — said the interlocutor of the edition.
After 1 April, the Deputy crown Prince and defense Minister of Saudi Arabia Mohammed bin Salman said his country would join the agreement on freezing of oil production only if a similar decision will bring Iran and other major producers.
Iran has repeatedly stated that it will not discuss freezing of oil production until, until you reach the level of production and exports before the imposition of sanctions. Moreover, in Tehran said that they are going to increase oil production to 4 million barrels a day, but sell it cheaper than the competition. According to the International energy Agency (IEA), this level of production Iran can only be achieved by the beginning of 2020-ies.
In February 2016, Russia, Saudi Arabia, Venezuela and Qatar have agreed to freeze oil production at the level of January 2016, provided that other oil producers would support the proposal. As stated in the Ministry of energy of Russia, the initiative of freezing the production was supported by 15 countries. As noted by the Minister Alexander Novak, scheduled for the Doha meeting on 17 April can be signed a document formalizing the idea of freezing the production.
In February 2016, the Secretary-General of the Organization of countries-exporters of oil (OPEC) Abdullah al-Badri during a speech at the annual international oil and gas conference in Houston, complained that “reactivity” of American industry in production of shale oil. According to him, American companies, extracting shale oil can easily increase production and to meet the shortage of hydrocarbons if the oil price will rise due to the reduction of production in other countries.
He said then that OPEC never had to deal with the source of oil that can so quickly respond to changing prices and to fill in the missing volumes. This, added al-Badri, greatly complicates the ability of the cartel to restrain the fall in prices by reducing production.