Establishing an oil alliance with Saudi Arabia under discussion

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Source: Arabic.Net – Agencies

The US Secretary of Energy told Bloomberg TV that the establishment of an oil alliance between the United States and Saudi Arabia, the largest producer in OPEC, is one of the “many ideas” circulated by US policymakers, but it is not certain that it will turn into an official proposal.

“I don’t know what will be presented formally … in the framework of the public policy process,” said Minister Dan Brolete. He said a decision had not been taken on “anything of the sort”, according to Reuters news agency.

Oil prices have fallen more than half in the past two weeks, with the OPEC + deal collapsing as the Corona virus pandemic hits demand.

US crude is trading at about $ 22 a barrel on Monday, after tumbling 29% last week in its sharpest decline since the outbreak of the Gulf War between the United States and Iraq in 1991.

A source familiar with the discussions taking place inside the Energy Ministry told Reuters on Monday that those officials are closely involved in talks between the Ministry and the White House on ways to stabilize energy markets.

The Trump administration will soon send a special energy representative to Saudi Arabia from the US Department of Energy, where he will spend at least months there to develop talks between the two countries. As the world’s largest oil exporter, Saudi Arabia has long led OPEC’s efforts to stabilize crude prices.

Bruilette told Bloomberg TV that the Trump administration would embark at some point in a diplomatic effort on oil markets. He said he would work on that track in cooperation with Secretary of State Mike Pompeo and other officials.







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