Russia and Saudi Arabia have found a reason for the new oil wars

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www.vsyako.netPhoto: Essam Al Sudani / Reuters

Oil war between Russia and Saudi Arabia, are terminated after the transaction in the format of OPEC+ in April, may flare up with new force. Before the next meeting, scheduled for June 9-10, the parties disagree on the parameters of performance of the contract from 1 July, writes Bloomberg.

Moscow plans to increase production in strict accordance with the signed agreement. This was told by three Russian officials and two sources in the industry.

Such confrontation has turned to industry unprecedented challenges, the scale of which forced market participants to sit down at the negotiating table and to promptly approve the new agreement. The deal came into force on may 1, but oil prices are still at too low levels, as supply still exceeds demand.

The seriousness of Saudi Arabia confirms its voluntary reduction of production by another one million barrels from the beginning of June. The Kingdom has gone to such measures due to the rapid growth of the budget deficit, which decided to compensate a threefold increase of taxes and refusal to pay the subsistence level.

Previously, experts predicted that an increase in the cost of oil up to the level of 50-55 per barrel Throughout Saudi Arabia can renew the war for markets.

Video, photo All from Russia.

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