The U.S. Energy Secretary Dan Brouillette believes that Saudi Arabia and Russia will start negotiations to end oil price war, which affects all major oil producers
Brouillette hopes that the two countries reach an agreement in second half of this week. After speaking with the energy ministers of Russia and Saudi Arabia, Brouillette is optimistic about the situation. “They are going to meet during this week and hopefully end this misunderstanding that started a few weeks ago,” said the U.S. Energy Secretary.
Dan Brouillette also hopes that Russia and Saudi Arabia will agree on oil production cut of between 10% to 15%. “Yes, I do believe it,” he said. Russia had expressed his willingness to deal with Saudi Arabia and other countries of OPEC+, which Russia joined in 2017. Other major participants also agreed on further negotiations with a condition – oil production cut must be implemented in other mining countries as well, not only those participating in OPEC+, which aims mainly only the U.S.
Oil price fell sharply after OPEC and OPEC+ meeting in first half of March. Moreover, the black gold prices plunged during the SARS-CoV-2 pandemic outbreak, what paralyzed global economy. Oil demand began to slump and oil price dropped to $30 per barrel.