OPEC, Russia agree to drop oil prices to wipe out competition

FILE - In this Feb. 26, 1997 file photo, Khaled al-Otaiby, an official of the Saudi oil company Aramco, watches progress at a rig at the al-Howta oil field near Howta, Saudi Arabia. According to an assessment published Monday, April 1, 2019, by Moody’s Investors Services, the net profits of Saudi Aramco reached $111 billion last year. That places Aramco ahead of some of the world’s most profitable firms. In their first-ever grade assessment for Aramco, Fitch Ratings issued the firm an A+ rating, while Moody’s gave it it’s A1 rating ahead of its upcoming bonds sale. (AP Photo/John Moore, File)

FILE – An official of a Saudi oil company watches progress at a rig at the al-Howta oil field near Howta, Saudi Arabia. (AP Photo/John Moore, File)

OAN Newsroom
UPDATED 7:22 AM PT – Friday, April 2, 2021

International oil cartel OPEC and its allies said they may drop crude prices again in response to an unfriendly stance by the Biden administration and attempts by Iran to reenter the market.

“The reality that remains that global picture is far from even and the recovery is far from complete,” stated Prince Abdulaziz bin Salman, the Saudi Arabian Minister of Energy.

During Thursday’s meeting in Vienna, OPEC and Russia agreed to increase oil output in the coming three months to balance out oil prices and remove unnecessary competition from the market.

The decision came after China and Iran agreed to a $20 billion trade deal that would help Iran increase its own oil production amid ongoing sanctions and then sell it to China.

Despite the potential threat from that new partnership, OPEC officials insisted they remain committed to maintaining control over the global energy market.

“In this situation, we should be monitoring the market carefully and we should be on top of things,” stated Russian Federation Deputy Prime Minister Alexander Novak. “Not allowing the market to overheat, but at the same time not allowing the market to be oversupplied.”

OPEC said the upcoming increase in the oil supply will reduce prices from the current $60 per barrel, but it will keep them at a comfortable level above $40 per barrel.

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