The Kremlin said that there are no price wars between Russia and Saudi Arabia, but that there is an unfavorable global situation for oil prices, and considered the situation of low oil prices uncomfortable, but not catastrophic.
Commenting on media reports that Washington is considering imposing sanctions on Moscow to force it to cut oil production, the Kremlin considered that this looks like a seasonal madness caused by the Coruna virus, as he described it.
In the same context, oil company Vettol warned that the global demand for oil may decrease by more than 10%, with more European countries resorting to isolation in order to combat the Corona virus.
She added that the demand may decrease by ten million barrels per day and perhaps more than the daily consumption of about one hundred million barrels.
She said it is impossible to anticipate the period of time in which the demand for oil will continue to decline, because that depends on the extent of the Coruna virus and the number of countries that will follow Italy's example in isolation measures.
Vitol expects that the storage capacity of oil will be used for commercial use in the world within two months.
American intervention on the horizon
US President Donald Trump has said that he had contacted a number of officials to discuss the current oil crisis, and announced that he would intervene at the appropriate time.
Trump added during a press conference that the drop in oil prices is a major tax cut for the American consumer, but at the same time it harms the industrial sector.
On the other hand, the Wall Street Journal reported that the administration of US President Donald Trump is studying pressure on Saudi Arabia to reduce oil production and threatening Russia with sanctions to stabilize the crude oil market.
The newspaper quoted close sources as saying that the new strategy followed pressure from US oil companies, which demanded the Trump administration to increase its diplomatic intervention in oil markets.
Quoting a US administration official, the Wall Street Journal added that the United States will ask Saudi Arabia to return to the original low levels of production before its decision this month to increase production.
The newspaper pointed out that the Trump administration's engagement with the Saudis on this issue will be through diplomats in the Ministry of Foreign Affairs and the White House, and through the National Security Council.
She added that US officials are looking for other long-term solutions to further cooperation with the Kingdom and prevent its alliance with Russia again.