EconomyMiddle EastSaudi Arabia

Saudi threatens new oil-price war with OPEC members

Saudi Arabia has issued a dire warning with OPEC members, Nigeria and Angola, warning that it would ignite an oil-price war with them unless they toe the line.

In June, OPEC+ members agreed to continue reducing production in an effort to boost oil prices and what they did has helped stem the previous decline in oil prices.

Yet, there are still countries that are refusing to comply. In the meeting, OPEC members identified Iraq, Kazakhstan, Nigeria, and Angola, as key culprits among others. However, Saudi and Russia could convince Iraq to abide and compensate for its previous lack of compliance.

Now, Saudi Arabia has threatened Nigeria and Angola, with the Wall Street Journal reporting that the kingdom has asked the two countries for a detailed description about how they plan to comply.

The ultimatum has been issued by Saudi energy minister Prince Abdulaziz bin Salman in recent weeks.

Saudi energy minister Prince Abdulaziz bin Salman (File photo)

Riyadh has threatened to begin a price war with them should they fail to comply. Saudi Arabia can start the war by offering its crude oil at a special discount to the main customers like India and China.

One of the consequences of a new price war is that it would result in a sharp decline in crude oil price.

Meanwhile, crude oil price rose for the second straight day on Thursday as traders ignore the surge in coronavirus cases around the world especially in the United States.

While, Brent, the international benchmark went up by 0.70% to $42, the West Texas Intermediate (WTI) rose by 0.65% to $40.0.

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