Director of the Energy Agency: Saudi Arabia offends itself when it cuts oil prices due to political considerations

The Executive Director of the International Energy Agency, Fateh Birol, criticized the role of Saudi Arabia and Russia in the current decline in oil prices, saying that Riyadh insults itself when it chooses to dump the market despite the decline in demand for crude, and it does so for political and diplomatic considerations.

Birol added - in an interview - that the citizens of the world "will remember that major powers that have the power to stabilize the economy in an unprecedented epidemic have decided not to practice that, and history will judge them."

As for Russia, which rejected new agreements to reduce oil supplies with the Organization of Petroleum Exporting Countries (OPEC), Birol said that Moscow was "taking an adventure aimed at producing shale oil in the United States."

He considered that getting out of the crisis requires either a global economic recovery after the Corona epidemic to support demand, or an agreement between producing countries to stabilize prices.

On Wednesday, oil prices ended their trading high, supported by progress in the approval by Congress of a massive economic stimulus package worth two trillion dollars to face the repercussions of the Corona virus, and the price of West Texas crude reached 24.49 dollars per barrel, up 2%, while Brent benchmark rose 0.9% to settle at 27.39 dollars For the barrel.

Pompeo statement
In a related context, the US State Department said that Minister Mike Pompeo spoke by phone yesterday (Tuesday) with Saudi Crown Prince Mohammed bin Salman, and Pompeo expressed, during his call, his deep concern about the spread of Corona virus, and the need for all countries to contain the epidemic.

The State Department confirmed that Pompeo informed the Saudi crown prince that the kingdom has a real opportunity to rise to the occasion and reassure energy and global financial markets, in light of the serious economic uncertainty, as Pompeo said.

Kuwaiti oil expert Abdul Samee Behbehani said - in an interview with Al Jazeera - that Saudi Arabia's decision to increase its oil production was a surprise to all, and led to a sharp drop in crude by about 40%, explaining that the visit of prominent American officials in the recent period to Saudi Arabia raised speculation about the possibility of an alliance A Saudi American in the field of oil outside OPEC.

Behbehani predicted the return of crude prices in global markets to balance gradually when the crisis of the Corona epidemic eases.