France: Saudi Arabia must coordinate on oil prices

Saudi Arabia must coordinate on oil prices to avoid economic disruption to other countries, France’s Minister of the Economy and Finance, Bruno Le Maire, said yesterday.

Oil prices plunged by more than 30 per cent yesterday, dragging financial markets down as Saudi Arabia began a price war with Russia.

“I want Saudi Arabia, as president of the G20 richest countries, to enter into coordination on the oil price question so that it doesn’t shake up the markets,” Le Maire told France Inter radio channel.

“In the long term, if oil prices fall too much that worries markets and has repercussions on financing for our companies and economies,” he added.

The French official stressed that oil companies should pass on the price cut “immediately to consumers at the pump.”

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Reuters has reported that the sharp drop in oil prices had added more stress to the financial markets, which were already in correction territory as investors re-evaluate profit and growth perspectives in light of the coronavirus outbreak.

Saudi Arabia, the world’s largest oil producer, announced its plan to raise its crude oil production to over ten million barrels per day (bpd) in April, after the collapse of a supply cut agreement between the Organisation of the Petroleum Exporting Countries (OPEC) countries, Russia and other producers.