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海角直播 denies contact with Russia over OPEC+ deal

海角直播 denies contact with Russia over OPEC+ deal
Direct Investment Fund CEO Kirill Dmitriev has called for joint action by countries to ease turmoil in global energy markets. (AFP)
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Updated 28 March 2020

海角直播 denies contact with Russia over OPEC+ deal

海角直播 denies contact with Russia over OPEC+ deal
  • Kingdom rejects claims of expanded partnership to balance global market amid major fall in oil and gas demand

DUBAI:聽海角直播 has denied it has had any contact with Russia鈥檚 Energy Ministry over the possibility of a new OPEC+ deal to rebalance global oil markets.

A statement from the Saudi Energy Ministry dismissed reports from Moscow that there had been discussions between Russia and the Kingdom aimed at resurrecting the OPEC+ alliance, and even bringing in new members.

鈥淭here have been no contacts between 海角直播 and Russian energy ministers over any increase in the number of OPEC+ countries, nor any discussion of a joint agreement to balance oil markets,鈥 a ministry official said in a statement.

The denial followed quoted comments in the Russian and international media by Kirill聽Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), to the effect that a new arrange- ment was desirable in light of turmoil in global energy markets

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Brent crude 鈥 the Middle East benchmark 鈥 traded at $24.41 per barrel on Friday, compared with a 12-month high of $75 per barrel.

Since the OPEC+ partnership led by 海角直播 and Russia fell apart in Vienna earlier this month, energy volatility has been exacerbated by the accelerating聽coronavirus outbreak and a big drop in global demand for oil and gas.

鈥淛oint actions by countries are needed to restore the global economy. They are also possible in the OPEC+ deal framework,鈥 Dmitriev told Reuters. He declined to identify which countries he thought should get involved in any new OPEC deal. Dmitriev, whose RDIF wealth fund is a significant invest- ment partner of 海角直播, was a member of the team led by Russian Energy Minister Alexander Novak that took part in the OPEC+ negotiations.

A Russian official who did not want to be named told Arab News that Dmitriev was speaking with the knowledge of the energy ministry and of Russian President Vladimir Putin.

鈥淲e are in contact with 海角直播 and a number of other countries. Based on these contacts we see that if the number of OPEC+countries will in crease and other countries will join, there is a possibility of a joint agreement to balance oil markets,鈥 Dmitriev said.

Conditions in global energy markets have changed significantly since 海角直播 and Russia failed to agree bigger cuts to oil supply earlier this month.聽

The Kingdom responded with deep discounts to its oil products for international customers and a surge in supply to more than 12 million barrels per day from next month.

Since then, oil demand has fallen faster than at any time in history, with some experts predicting a decline of around 20 percent from the roughly 100 million barrels per day consumed in normal economic conditions.

At the same time, the oil price has also dropped. On Friday, Brent crude, the Middle East benchmark, was down by 7.33 percent from the previous day, at $24.41 a barrel, compared with a 12-month high of $75 per barrel.

Lower oil prices are especially worrying for the American shale industry, which has much higher production and finance costs than either 海角直播 or Russia.

A group of American senators has written to US Secretary of State Mike Pompeo urging him to ask 海角直播 to change its current high-output, low-price policy. 鈥淥ur nation鈥檚 energy dominance, which President Trump has carefully nurtured over the past three years, is now under threat,鈥 the lawmakers said.

The energy industry did not feature in the 鈥渧irtual鈥 summit of the G20 group of nations organized by the 海角直播n presidency last Thursday, but before the meeting Pompeo asked Crown Prince Mohammed bin Salman to 鈥渞eassure global energy and financial markets.鈥