Oil Production Fight Continues
CBJ — Last week there had been hope the fight that has led to increased oil drilling by both Russia and Saudi Arabia would come to an end on Monday, but the scheduled meeting has been delayed at least three days as both sides continue to accuse the other of causing the international problem.
The increased drilling has led to an even larger stockade of oil reserves and as such has resulted in the lowest crude prices since 2002.
It’s now expected the two sides will talk as part of an OPEC meeting on April 9.
The delay came amid pressure from U.S. President Donald Trump for OPEC to do everything in its power to stabilize global markets.
Oil prices hit an 18-year low on March 30 due to a slump in demand caused by lockdowns to contain the COVID-19 pandemic and the failure of OPEC and other producers such as Russia to extend a deal on output curbs that expired on March 31.
Saudi Arabia originally called for a reduction in output as a means of increasing the value of a barrel of oil, but when Russia balked at the demand the Saudis retaliated by also increasing their daily output.