On Saturday, the 21st of March 2020, a senior Russian official said that Kremlin was neither seeking a sharp plunge in crude oil prices nor an end to a three-year-long pact of OPEC members alongside Russia-led other petroleum exporting countries, widely dubbed as the OPEC+, adding the Gulf countries were responsible for triggering a crude oil price war for a larger slice of market share that resulted in a mayhem in crude oil futures’ market, while several industry analysts said a US crude futures’ prices at current level would bankrupt a number of US Shale operator and could cast holocaust for further onshore drilling operations in the United States.
As a matter of fact, earlier this month, following two days of tentative talks, Moscow and OPEC could not reach an agreement on further output cut to revive the crude oil prices, while Moscow was quoted saying an output cut would never work since the supplies would be quickly recovered by the US Shales, which had made the United States the world’s largest crude oil producer following a regulatory change on US crude oil drilling by Obama administration back in the 2015s.
Nonetheless, shortly after OPEC+ tie had broken off, Saudi started off overflooding the market with crude oil at a discounted price, eventually resulting an abrupt nosedive nearly 48.30 per cent of US crude oil futures’ prices to $23.30 per barrel over the past three weeks.
Meanwhile, Russia’s state-backed news agency TASS, often contemplated as one of the largest across the globe alongside Reuters along French AFP, had quoted the first Deputy Prime Minister of Russia, Andrei Belosov as saying on Saturday (March 21st), “Russia has never tried to spark a drop in oil prices.
It was our Arab partners who initiated this. Even the oil companies that were previously interested in their markets did not take the position that the (OPEC +) agreement should be terminated. But our Arab partners have taken a different position. ”