Saudi Aramco Responds To OPEC Flop, Slashes Crude Price
Saudi Arabia Aramco has started an oil war following the OPEC plus fall out as the state owned company slashed crude price to 20 years low.
Saudi made this known Saturday in a statement where it said that it would cut oil price to Asia to $4- $6 per barrel, while to US at $7 per barrel.
Saudi said it was a sample of the manner it would further respond to the fall out between OPEC and partners including Russia.
According to a statement released to Bloomberg, Iman Nasseri, managing director for the Middle East oil consultant FGE said, “Saudi Arabia is now really going into a full price war.”
The collapse between the blocks has ended the corporation between Saudi Arabia and Russia, a corporation which has stabilised oil price since 2016.
Aramco’s decision would affect oil price export of about 14 million barrels per day, as other OPEC members would follow Saudi’s lead.
Saudi had wanted to announce the cut but delayed the announcement following the meeting which ended in a deadlock.
Aramco also cut its supply to Northwest Europe to $6-$8 per barrel as a direct attack on Russia which sells a large percentage of its crude Urals in the same region.
The coronavirus pandemic has continued to spread to over 97 countries which posses more threat to global oil price.