U.S. Energy Secretary, Dan Brouillette, said on Monday that “after speaking with the energy ministers of Saudi Arabia and Russia,” he believes the countries will cut oil output and end their war over market share this week.
“They are going to get together later this week and hopefully end this disagreement that started perhaps two or three weeks ago,” Brouillette told Fox Business Network.
Brouillette spoke to Saudi counterpart Prince Abdulaziz bin Salman at the weekend, telling him the battle for market share has “major implications” for the United States and the world, the U.S. Energy Department said.
Last week saw one of the biggest price leaps in the history of the oil industry, with US futures surging from around $20 a barrel at mid-week to a close of $28.34 on Friday.
Russia and Saudi Arabia are “very, very close” to a deal on oil production cuts, according to the chief executive of Russia’s sovereign wealth fund RDIF.
The ongoing coronavirus crisis could cause a “major global recession,” especially given the high levels of leverage, he said. “It’s an example that we need to work together with the U.S. to stabilize the world economy, and stabilizing oil prices is one part of it.”