Oil price: OPEC+ ministers to talk via Video on Monday

In an attempt to stabilize global prices of oil, the Organisation of Petroleum Exporting Countries (OPEC) ministers want to talk via video conference on Monday.

Global prices of oil have dropped more than 70% due to inability of OPEC+ to cut production.

Rivalry between Russia and Saudi Arabia has plunged global prices of oil.

Meanwhile, declining prices is affecting some shale oil producers in the United States as oil companies have started filling for Chapter 11 (Bankruptcy).

Experts predict that not many oil companies in the States would be able to survive if oil prices continue to decline.

Thus, energy ministers from the oil cartel would conduct a video conference, in an effort to find a way to stabilize prices for the commodity, Azerbaijan announced on Friday.

“This meeting is being held at the invitation of the kingdom of Saudi Arabia after the talks mediated by U.S. President Donald Trump,” Azerbaijan’s Energy Ministry said in a statement.

The meeting will include the members of the Vienna-based OPEC and allied oil-producing states in the OPEC+ format, such as Azerbaijan and Russia, according to the statement.

A Vienna-based source confirmed that OPEC+ ministers will conduct talks on Monday, which may be joined by additional countries.

Azerbaijan, an oil-rich, former Soviet republic on the Caspian Sea, has close economic relations with Russia.

However, Trump said on Thursday that he expected Russia and Saudi Arabia to cut oil production in an effort to stabilize prices.

A price war between Russia and Saudi Arabia has drastically driven down oil prices globally. On top of that, a slowdown prompted by the coronavirus pandemic has reduced demand.

Trump has been in contact with Saudi Arabia’s crown prince, Mohammed Bin Salman, and Russian President Vladimir Putin this week to discuss the oil market.

“I expect and hope that they will be cutting back approximately 10 million barrels and maybe substantially more, which, if it happens, will be great for the oil and gas industry,’’ Trump said on Twitter.

Oil price: OPEC+ ministers to talk via Video on Monday

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