#SaudiArabia says no talks on new oil deal as Moscow suggests larger OPEC+ - Reuters

Saudi Arabia says no talks on new oil deal as Moscow suggests larger OPEC+ - Reuters:

Saudi Arabia said on Friday it was not in talks with Russia to balance oil markets despite rising pressure from Washington to stop a price rout amid the coronavirus pandemic and an attempt by Moscow to fix a rift with the de facto OPEC leader.

A three-year supply pact between the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, fell apart this month after Moscow refused to support Riyadh’s plan for deeper production cuts, prompting Saudi Arabia to pledge to raise output to a record high.

The resulting supply boost has coincided with plummeting demand as governments around the world implement national lockdowns to slow the spread of the coronavirus. The twin-pronged assault on prices has sent Brent crude LCOc1 to a 17-year low below $25 a barrel and hammered the income of oil producers.

“There have been no contacts between Saudi Arabia and Russia energy ministers over any increase in the number of OPEC+ countries, nor any discussion of a joint agreement to balance oil markets,” an official from Saudi Arabia’s energy ministry said, referring to the wider grouping of oil producers.