Saudi Arabia has called for an emergency meeting of the Organisation of Petroleum Exporting Countries, OPEC, Russia, and other oil producers to stabilise the oil market, which has been in turmoil since a deal on supply curb collapsed and Riyadh began pumping extra crude into an oversupplied market.
The announcement made by Saudi Arabia on Thursday, which drove oil prices as much as 25% higher on the day, adds to growing signs that Riyadh and Moscow may be ready to end oil war for market share and cooperate again.
U.S. President, Donald Trump, said on Wednesday he had spoken with Saudi and Russian leaders and believed the two countries would make a deal to support prices, which even after Thursday’s spike are less than half their level at the start of 2020 before the Coronavirus crisis took its toll.
Earlier on Thursday, Russian Energy Minister, Alexander Novak, told Reuters it had no plans to crank up its crude output.
OPEC basket oil price used by the cartel to set its production quotas slumped by nearly $2 to $16.19 on Wednesday.
According to Reuters, the basket includes Algeria’s Saharan Blend, Angola’s Girassol, Congo’s Djeno, Equatorial Guinea’s Zafiro, Gabon’s Rabi Light and Iran Heavy as well as Iraq’s Basra Light, Kuwait Export, Libya’s Es Sider, Nigeria’s Bonny Light, Saudi’s Arab Light, the UAE’s Murban and Venezuela’s Merey.