This contributed to the collapse in oil prices in late April, as the US standard West Texas Intermediate crude fell into negative territory, while Brent crude, the international benchmark, briefly fell below $ 20 a barrel.
Traders anticipating a new deal, Brent crude oil and West Texas Intermediate oil rose nearly 6% on Friday, to $ 42.30 per barrel for Brent crude oil and to $ 39.55 per barrel for West Texas oil. The markets were closed on Saturday.
The shocking fall in prices coupled with pressure from President Trump, who was worried about job losses in the oil industry in the United States, led Riyadh and Moscow to suddenly change their approach and resume their cooperation.
The two oil giants have worked together to orchestrate the extension agreed on Saturday and have also pressured Iraq, the second largest producer of OPEC, to publicly declare that it will honor its commitment to cut production by about 1 million barrels per day. Analysts have estimated that Iraq misses the target of hundreds of thousands of barrels a day.
“Despite the economic and financial circumstances facing Iraq, the country remains committed to the agreement,” said Saturday in a statement issued by OPEC Assem Jihad, spokesman for the Iraqi Oil Ministry.
The Saudi minister emphasized this message.
“Each of the 23 countries represented here must be alert to any sign of turning back from their commitments,” he said at the second meeting. And he warned that production would be closely monitored.