The WSJ has learned about the attempt of Saudi Arabia to conclude a secret deal with OPEC


Saudi Arabia a month ago offered OPEC a secret deal, the WSJ reported informed sources. The Kingdom offered the organization to reduce daily production by 400 bbl. provided that his main rival, Iran, will maintain the level of production at 3.6 million barrels. a day and would not increase it to the pre-sanctions level. However, the Minister of oil of Iran Bijan Zanganeh ultimately rejected this proposal. Tehran wants to ramp up production levels to 4.2 million barrels. a day.

According to interlocutors of the edition familiar with the strategy of Riyadh, Saudovskaya Arabia, ex-oil Minister, which in February said that the Kingdom does not scare the price of oil to $20 a barrel, was forced to change its position in recent times due to growing probability of the economic crisis. The attention of the Minister of oil of Saudi Arabia Khalid al-falikha attracted a forecast by OPEC for keeping the oil glut of the market in 2017, according to WSJ sources. These data indicate that the negative economic effect of low oil prices will last longer than expected by the Saudis. In this country, a costly military operation in Yemen, and the standard of living of the middle class falls.

This week, Saudi Arabia took the decision to reduce zarplatoi senior officials by 20% and cut benefits for public servants.

“The pressure was on. Falih and the government realized that they must show that they are not just silently look at how they affected their economy and the economies of other countries”, — said a source close to the Ministry of petroleum of the Kingdom.

  

Source