Saudi Arabia will only freeze production if Iran agrees to terms.

Oil prices were sent into freefall on Friday as Saudi Arabia’s deputy crown prince gave a strong indication that a price freeze agreement would be difficult to reach.

OPEC and other major oil suppliers, including Russia, are still due to meet in Qatar on April 17 to discuss the oil price crisis.

But in an interview with Bloomberg Mohammed bin Salman said that Saudi Arabia would only participate in price freezes if Iran and other suppliers did too.

“If all countries agree to freeze production, we’re ready,” he said. “If there is anyone that decides to raise their production, then we will not reject any opportunity that knocks on our door.”

West Texas Intermediate (WTI) crude oil responded badly to the news, and has dropped 4.02% to $36.80 (£25.93).

Brent crude oil suffered a similar fate, dropping 4.12% to $38.67 (£27.25).  

Things weren’t helped by Kuwait and Saudi Arabia agreeing earlier this week to resume production at Khafji field, which will yield between 280,000 – 300,000 barrels of oil, contributing further to the global oversupply.

(Business Insider)

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