Saudi Arabia will only freeze oil prices if Iran does, says kingdoms deputy crown prince
ERBIL, Kurdistan Region - Saudi Arabia's deputy Crown Prince, Mohammad bin Salman, has said that his country will only freeze its oil output levels provided that its regional rival Iran and other major oil producing nations also freeze theirs.
"If all countries including Iran, Russia, Venezuela, OPEC countries and all main producers decide to freeze production, we will be among them," he told Bloomberg in an interview published on Friday.
"I don't believe that the decline in oil prices poses a threat to us," he added. "For us it's a free market that is governed by supply and demand and this is how we deal with the market."
The major OPEC oil producers of Saudi Arabia, Qatar, Venezuela negotiated a freeze along with non-OPEC member Russia in February aimed at keeping production levels at January levels so maintain a steady market price. They will meet for further discussions on April.
Iran to date has not agreed to cap its production since its levels in January were not the same as pre-sanctions levels. Economic sanctions, including oil sanctions, leveled against Iran were only removed in January. Tehran says it wants to increase current production to what it was before the sanctions before agreeing to any freeze.
Tehran produced about 3.2 million barrels a day in February. The highest in four years. It produced roughly 4 million barrels a day before sanctions were imposed on its oil sector.
"If all countries including Iran, Russia, Venezuela, OPEC countries and all main producers decide to freeze production, we will be among them," he told Bloomberg in an interview published on Friday.
"I don't believe that the decline in oil prices poses a threat to us," he added. "For us it's a free market that is governed by supply and demand and this is how we deal with the market."
The major OPEC oil producers of Saudi Arabia, Qatar, Venezuela negotiated a freeze along with non-OPEC member Russia in February aimed at keeping production levels at January levels so maintain a steady market price. They will meet for further discussions on April.
Iran to date has not agreed to cap its production since its levels in January were not the same as pre-sanctions levels. Economic sanctions, including oil sanctions, leveled against Iran were only removed in January. Tehran says it wants to increase current production to what it was before the sanctions before agreeing to any freeze.
Tehran produced about 3.2 million barrels a day in February. The highest in four years. It produced roughly 4 million barrels a day before sanctions were imposed on its oil sector.