Saudi Arabia threatens new oil-price war with OPEC+ members
The Saudis are encouraged by Russia’s defeat and the US partial surrender in the recent oil war.
After such success, Saudi energy minister Prince Abdulaziz bin Salman has issued the ultimatum as he asked Angola and Nigeria to submit detailed pledges to carry extra oil-production curbs. Otherwise, the Kingdom threatens to swamp the market with cheap oil. The main reason that could lead to a new oil-price war is a failure to fulfill the obligations of the OPEC+ deal. Unlike other countries, Saudi Arabia always complies with its obligations. Thus, according to the data provided by the International Energy Agency, obligations of the latest OPEC+ deal on oil output reduction in May were honored only by 89%. The Saudis met 100% of their obligations whereas Russia fulfilled just 97%. Other members of the OPEC+ deal managed to carry out only 86% of their obligations. Thus, such an irresponsible attitude to the agreement led to the ultimatum issued to Angola and Nigeria.
The global oil price slump was stopped only due to the OPEC+ deal. The document was signed by 23 countries that agreed to lower the global oil output by 9.7 million barrels a day in May and June.