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Saudi Arabia could not agree with Iran about reducing oil production

Саудовская Аравия не смогла договориться с Ираном о снижении добычи нефти

Among oil-producing countries already have been discussions about reducing the volume of extracted oil. Such measures are necessary for the resolution of global energy prices, particularly for oil.

Long negotiations did not lead to any results. The country’s cartel “OPEC”, apparently, relied on self-stabilization of the price level and categorically refused to reduce the volume of the extracted raw materials. Over time, however, the situation is still compelled to act and there has been progress in this area.

So, on April 17 in the Qatari capital of Doha to meet the largest oil producers. The participants in the plan will need to discuss the freezing of raw material extraction. In addition, Saudi Arabia, Qatar, Russia and Venezuela have agreed to limit production to the level of January of the current year. After this statement, desire to join this agreement expressed and other countries. Among them were Ecuador, Algeria, Nigeria, Oman, Kuwait and the UAE.

Earlier, on 22 March of this year, a source in OPEC expressed the readiness of Saudi Arabia to sign a Treaty to freeze the production even if Iran gives up a mirror action. But Iran, it seems, did not share this attitude. The country is ready to discuss cooperation in this direction only after the production will reach 4 million barrels per day. At the moment Iran produces 3.22 million barrels.

This gesture is not appreciated in Saudi Arabia. The second crown Prince of Saudi Arabia Mohammed bin Salman made a statement, according to which Saudi Arabia is ready to reduce oil production, only in the case if similar measures will go and Iran too.

Inconsistency in the actions of oil producing players are unable to affect the energy market. Against the background of negative statements Salman the price of Brent crude on the ICE stock exchange has fallen by almost two percentage points compared with the close of trading on 31 March and amounted to $ 39,55 per barrel.

The price of a barrel depends a lot on expectations. And while the major players can’t agree among themselves about the decline in the number of extracted raw materials, the market there is nothing good to expect can, in turn, will have a negative impact on the price of barrels of oil.

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