Lately the global oil market has been in continued turbulence. It seems that almost everything can influence oil price movements, from atmospheric pressure to football results. Now any development is viewed in light of how it affects crude prices. When the situation is tense, a single statement can change the scenario in the market completely. And if the statement comes from a Saudi Arabia’s crown prince, the impact may be dramatic.
Amid speculations about the meeting of major oil producers in Qatar, Saudi Arabia said it would not agree to freeze oil output if Iran does not join the deal. The announcement made by Saudi Arabia's deputy crown prince Mohammed bin Salman was followed by a decline in oil prices. Saudi Arabia was the one to propose freezing the production at current levels. After Russia confirmed its determination to participate, crude prices started to recover steadily.
It is not clear whether Saudi’s statement should be taken literally. And certainly it does not guarantee that crude oil exporters would arrive at consensus on the deal at the meeting in Doha. Meanwhile, a few days ago OPEC sources said that Saudi Arabia will freeze oil output even if Iran refuses to take part in the agreement. Iran is still set to consider production freeze after its output reaches 4 million barrels per day.
