Wednesday 13 May 2020

#SaudiArabia, Russia See Oil Recovery While Cuts Take Effect - Bloomberg

Saudi Arabia, Russia See Oil Recovery While Cuts Take Effect - Bloomberg:

Saudi Arabia and Russia see signs that oil demand is recovering as countries around the world start to relax lockdowns imposed to fight the spread of the coronavirus outbreak.

The Saudi-Russia statement comes as oil traders and consultants notice an increase in oil demand, particularly in Asia, driven primarily by rising gasoline consumption as citizens emerging from lockdowns opt to drive rather than use public transport.

“We are also pleased with the recent signs of improvements in economic and market indicators, especially the growth in oil demand and the ease in concerns about storage limits as various countries around the globe begin to emerge from their stringent lockdowns,” Saudi Energy Minister Prince Abdulaziz bin Salman and his Russian counterpart Alexander Novak said Wednesday in a joint statement.

Riyadh and Moscow, which lead the OPEC+ alliance, said they were serious about mitigating the unprecedented collapse in oil consumption and prices via their production cuts. Only a month ago, the two countries were engaged in a destructive price war.

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