Iraq, OPEC’s second-largest oil producer, followed the same path as its leader, Saudi Arabia, to lower its oil price in this upcoming April. The cut was not as much as Saudi’s discount, but still considerably high.
Iraq decided to cut the official selling price for its Basrah Light crude for customers in Asia by $5 per barrel, which was lower than Saudi’s discount, announced earlier at $6 to $8 per barrel.
The series of cutting prices came after the collapse in OPEC’s meeting last week when the group failed to reach an agreement with Russia, who declared to pump its production by next month. Saudi Arabia also followed Russia and announced a discount to its customers in Asia, the US and Europe, sending oil benchmark to plummet as well as global stock markets.
However, the news of discount on oil prices might not be as big as yesterday’s report of Russia hinting Saudi Arabia for a talk after the oil crash.
Russian Energy Minister Alexander Novak told reporters that the country had not ruled out measures with OPEC to stabilize oil markets.
Reuters reported that Novak is proposing to hold a meeting with Russian oil companies on Wednesday to discuss whether they will prolong their alliance with OPEC.
Yesterday, Brent rose $2.86 or 8.3%, to settle at $37.22/barrel, while WTI futures jumped 10.38% or $3.23, to settle at $34.36/barrel.