Saudi Arabia: We’re closely monitoring the global oil market
Saudi Arabia says it is closely monitoring activities in the oil markets and is ready to take further measures to salvage the market situation.
The Saudi Press Agency quoted Majid bin Abdullah Al-Qasabi, the minister of commerce and investment, as saying the cabinet is keen on achieving stability in the oil market.
Al-Qasabi said that the cabinet continues in monitoring the “oil market situations closely, and being prepared to take further measures jointly with OPEC+ and other producers.”
He also said the cabinet discussed the kingdom’s “affirmation with the Russian federation of a firm commitment to implement agreed targeted cuts over the next two years”.
Under the new OPEC deal, which ended the price war between Saudi Arabia and Russia, both countries will cut 2.5 million barrels each from global supply.
However, crude oil prices have remained low since the agreement was reached signalling that the cuts may be insufficient.
Lockdowns caused by the coronavirus pandemic is estimated to have erased 30% of the global oil demand.
During trading on Tuesday, Brent crude price dropped below $20 while US WTI rebounded from the negative price recorded on Monday to stand at $10 per barrel.
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