Saudi Arabia had no plans to hurt US oil producers, said Saudi Energy Minister Prince Abdulaziz bin Salman in an interview with a select group of journalists, including Amena Bakr d ‘Energy Intelligence.
“I made it clear that it was not on our radar or on our intention to cause any kind of damage to their industry. I believe that once this market has stabilized, and given the nature of shale oil and the shale industry, they will be able to recover as the market recovers, as the global economy is recovering. So I have no doubt that in the future they will rise from the ashes and thrive and thrive, “the Saudi minister told reporters in a telephone interview released on Tuesday by Energy Intelligence.
Saudi Arabia looks forward to a time when US producers will once again thrive in a market where demand for oil is higher, said Abdulaziz bin Salman.
Before OPEC + group agreed to cut oil production on Sunday, leaders of OPEC and non-OPEC countries, Saudi Arabia and Russia, respectively, exchanged charges against whom is to blame for the collapse of the previous agreement. Russian President Vladimir Putin has said that the oil price war in Saudi Arabia and its desire to offer large discounts for its oil are aimed at bankrupting the American shale. Saudi Arabia responded to this by accusing Russia of breaking up the OPEC + coalition last month. The words attributed to Putin by the media are “completely untruthful,” said Saudi Foreign Minister Prince Faisal bin Farhan Al Saud in a statement in early April.
The new OPEC + agreement put the Saudi-Russian feud behind and was an effort to respond to the glut threatening to fill global storage in a matter of weeks as demand collapsed amid the COVID-19 pandemic. The reduction of almost 10 million barrels a day would only last two months – May and June – after which producers would soften the reductions.
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The idea to extend the cuts over two years came from Saudi Crown Prince Mohammed bin Salman, said the Saudi energy minister in an interview with journalists.
Asked about the Saudi-Russian dynamics in the negotiations leading to the agreement, Abdulaziz bin Salman told Energy Intelligence:
“Within a family, there are differences of opinion. I wouldn’t call it a quarrel. Everything happens within the family. In the end, a family is a family. When faced with a difficult situation, two parents go out and this feeling of gangs prevails. “
According to the minister, despite disagreements during negotiations, such as that with Mexico, “I think the first reading of this is that Opec-plus is here to stay. “
By Tsvetana Paraskova for Oilprice.com
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