The meeting between OPEC and Russia, which was scheduled to take place on Monday this week, has been postponed to Saturday, April 9. The decision was made as Russia and Saudi Arabia continue to butt heads over who was to be blamed over the cancelation of the pact that resulted in the global oil price crash.
Sources close to the negotiations revealed that the scheduled virtual meeting between the major producers was still going to happen. However, the postponement was decided to allow more time for negotiations. OPEC had denied that it was in conflict with Russia over who was to blame, stating that the atmosphere remained positive and that both sides are willing to reach an agreement to stabilize global prices.
Both countries are under immense pressure from global producers that are now feeling the crunch of the continually plummeting oil prices. The US recently called on both countries and the Organization of the Petroleum Exporting Countries (OPEC) to resolve their issues and to work together to stabilize oil prices, which have already reached new record lows.
As of the end of March, oil prices had slumped to an 18-year low, a dire situation exacerbated by declining demand caused by the ongoing coronavirus pandemic spreading worldwide. Both Russia and OPEC have yet to reach an agreement to reduce their respective outputs, resulting in the collapse of the pact between the two producers.
OPEC is reportedly proposing an agreement to cut production to about 10 percent of the world's supply. This equates to about 10 million barrels per day, an unprecedented strategy that will require the cooperation of all major producers, including the US and Russia.
The US had yet to express its willingness to join in the effort. Meanwhile, Russia and Saudi Arabia are still busy pointing fingers. Russian President Vladimir Putin stated on Friday that Saudi Arabia was the one to blame for the oil price collapse. This prompted Saudi Arabia to issue a response the following day, stating that Russia was the first one to back out of its commitments.
Saudi Energy Minister Prince Abdulaziz bin Salman mentioned in a statement that Russia was the first to tell the media of its intention not to limit its production. During his speech on Friday, Putin stated that Saudi had already withdrawn from the OPEC deal and increased its production. Saudi denied Putin's claims and stated that its reported withdrawal from the OPEC deal was "devoid of truth."
