Monday, September 5, 2016

Prices rise: It’s getting expensive: Saudis and Russians want oil price … – ABC Online

 
 
 
 

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Russia and Saudi Arabia have protested on capping their oil production agreed. The report Russian media. Saudi Arabia has the pact in principle request confirm. For consumers that meant rising fuel oil and gasoline prices. The prices for crude oil loaded on Monday already clearly.

 

The era of cheap oil has perhaps soon an end. Saudi Arabia and Russia want to cooperate to the oil prices to “stabilize”, as they say. These two countries have signed an agreement, a joint working group should meet for the first time in October.

As the Russian news channel “Russia Today” reported, both oil-producing countries agreed on a funding cap. Accordingly, the Saudis want lids production. Russia Today quoted Russian Energy Minister Alexander Nowak with the words “The freezing of oil production is an efficient tool to stabilize the price of oil”.

The Saudi energy minister confirmed on the edge of the G20 Summit in Hangzhou, China that a conveyor ceiling was discussed. However, Khalid Al-Falih said that there were currently no need for a freeze on delivery.

Oil prices on world markets reacted promptly. The price for a barrel of North Sea Brent prices increased abruptly in the morning by two dollars to around 49 dollars. Later, prices slumped toward $ 48 from.

Saudi Arabia is considered the leader of the OPEC countries, Russia has been a competitor of that cartel. Should coordinate the two major sponsors, which can only have one goal: rising oil prices. Because the budgets of both countries suffered recently amid falling revenue from the oil business.

The key for success, however, is the behavior of Iran. Tehran wants after the end of economic sanctions expand oil production.

  mv
 


 

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