Saudis postpone decision on oil price | Financial

Official Sales Prices (OSP) for May were initially planned for April 5. With the previous postponement, Saudi Arabia took time to reach agreements on production restrictions with other OPEC countries and allies of the oil cartel to prop up prices.

Price war

Due to the pervasive new coronavirus, the demand for oil has declined many times over. Furthermore, Russia and Saudi Arabia previously caused a price war because they could not agree on new production restrictions. That caused a drop in oil prices.

It would now be the third time that Saudi Arabia has put the price decision before it. Among other things, the country is still talking to Mexico, which does not yet want to support the agreements. On Thursday, other major oil-producing countries reached an agreement to cut production by 10 million barrels per day.

Applause

There will be more talks on measures on Sunday. Low oil prices are causing the impact of the US oil industry. The fall in prices is also reducing the budgets of countries that depend heavily on oil exports.

Traders and customers of the oil giants are eagerly awaiting OSPs comparing around 14 million barrels of Persian Gulf crude oil exports.