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Saudi Arabia to Host OPEC+ Video-Conference on Thursday

Saudi Arabia to Host OPEC+ Video-Conference on Thursday

Sunday, 5 April, 2020 - 06:15
FILE PHOTO: An oil pump is seen at sunset outside Scheibenhard, near Strasbourg, France, October 6, 2017 . REUTERS/Christian Hartmann

OPEC and allies are due to meet during a video-conference on Thursday to discuss a possible new global crude supply cut, a Saudi source said Sunday, according to Reuters.

It said that the Kingdom wants to avoid a collapse in talks similar to what happened in March when Russia failed to cooperate with the other OPEC members.

Saudi Aramco will delay the release of its crude official selling prices (OSP) for May until April 10 to wait for the outcome of a meeting between OPEC and its allies regarding possible output cuts, it added.

“It is an unprecedented measure that has not been taken by Aramco before. May OSPs will depend on how the OPEC+ meeting concludes. We are doing what we can to make it successful, including taking this extraordinary step to delay the OSPs,” the Saudi source said.

Saudi Aramco typically issues its OSPs by the 5th of each month, setting the trend for Iranian, Kuwaiti and Iraqi prices and affecting more than 12 million barrels of oil per day bound for Asia.

Originally, OPEC+ had postponed a Monday meeting to discuss oil output, OPEC sources told Reuters, as tension over plunging crude prices intensified.

Saudi Arabia was the first to call for an emergency meeting of OPEC and other oil producers, a grouping known as OPEC+, to stabilize the oil market.

The meeting’s postponement came amid strong efforts exerted by US President Donald Trump for action to stop the sharp fall in oil prices due to the coronavirus outbreak.

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz and Trump have talked over the phone, discussing global energy markets.

Saudi Arabia said it had invited for the OPEC+ meeting in line with the Kingdom's constant efforts to support the global economy in this exceptional circumstance, and in appreciation of Trump's request.

OPEC+ is working on a deal to cut the production of oil equivalent by about 10 percent of world supply, or 10 million barrels per day, in what member states expect to be an unprecedented global effort including the United States.

OPEC sources, who asked not be identified, told Reuters the emergency virtual meeting planned for Monday would likely now be postponed until April 9 to allow more time for negotiations.

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