The head of the Saudi energy Ministry, Prince Abdulaziz bin Salman, compared the spat with Russia in March to the differences that arise in any family, but at the same time make it stronger and stronger.
In March, OPEC+ failed to agree on the future of the OPEC + deal amid the coronavirus pandemic, which led to the agreement being torn up and the start of a price war in the market. Russia then offered to simply extend the agreement on current terms to better assess the situation and make a more balanced decision, while Saudi Arabia was ready to accept only the option of increasing the reduction in oil production by the Alliance by 1.5 million barrels per day.
“I wouldn’t call it a divorce. As in any family, its members have disagreements. But usually, families do not take out the trash from the hut, and always quarrels are resolved. You know, it all depends on how strong the connection is in the family, and in this family it is strong. And overcoming differences makes any family even stronger. So, as I said, we’re family. And as a family, we are now more resilient to any potential quarrels that may arise in the future,” the Minister said in a statement.
“So sorry if I disappoint, we don’t need any divorce,” he added.
OPEC+ agreed on April 12 to reduce oil production by 9.7 million barrels per day in May-June, 7.7 million in the second half of the year and 5.8 million further until the end of April 2022. The base of reference is October 2018, but for Russia and Saudi Arabia, 11 million barrels per day are taken, from which, by analogy with all of them, there is a decrease of 23%, 18%, and 14%, respectively. Mexico also insisted on certain conditions: it reduces production only by 100 thousand barrels per day in May-June; the remaining 300 thousand for it is reduced by the United States.