According to Bloomberg on August 8, a Saudi official said that as oil prices fell to a seven-month low, Saudi Arabia had called other oil producers to discuss possible countermeasures.
The official, who declined to be named, said Saudi Arabia would not tolerate any further decline in oil prices and was considering all options, but he did not say what specific measures were being discussed.
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Saudi Arabia, the world’s largest oil exporter, has cut its oil production beyond what OPEC has agreed with its allies outside the organization.
Oil has been involved in the collapse of global markets caused by international trade tensions, which has raised concerns that it will evolve into a currency war. The worsening economic situation prompted interest rate cuts in New Zealand, India and Thailand this week, amid fears that the economy might fall into recession.
West Texas Intermediate futures rebounded Thursday in Saudi Arabia after falling 4.7% Wednesday. At 1:07 p.m. Singapore time, US benchmark crude oil prices rose 3.2% to $52.72 a barrel.
Helima Croft, chief commodity strategist at RBC Capital Markets, said the meeting planned to take place in Abu Dhabi within a week starting September 9 would be crucial for OPEC + leaders, especially Saudi and Russian energy ministers, because they needed to After the sharp fall in oil prices, relevant signals were sent on production issues.
“It’s been a tough week for oil producers,” Croft said. I don’t think they are complacent about this initiative. I can imagine that Secretary-General Barkindo was having a very intense conversation when he was on the phone with Harid Falkh and Alexander Nowak.