In the picture Tiberio Graziani.
Tiberio Graziani, director of the Italian International Vision and Global Trends Institute for Analytical Studies, said today, Tuesday, that Saudi Arabia’s decision to increase production and thus reduce the price of oil is beneficial to the United States and makes the oil market more chaotic.
Rome – Sputnik. “I believe that Saudi Arabia’s unilateral decision to reduce the price of oil was a tactical ploy that was mainly directed against Russia,” Graziani told Sputnik. He added: “When it comes to any type of energy source, whether from the point of view of technology development or infrastructure improvements or as in this case, from the point of view of the market or transactions in it, you always act consciously or not, in a geopolitical context Therefore, Saudi Arabia’s decision has a clear geopolitical dimension. ”
He added: “Riyadh’s behavior may help counter Russia’s attempts to boost its efforts in the Middle East and North Africa.”
Graziani explained: “Currently, Saudi Arabia’s” head blow “serves the United States, as it punishes Russia and creates indirect problems for China, meaning that it strikes two countries, Russia and China, with which the Trump administration declared a trade war with it long ago.
The head of the institute concluded that “because of this decision, the oil market has become more chaotic, than it was before.”
And oil futures prices fell by more than 20 percent, last Sunday evening, after Saudi Arabia reduced the official price for selling its crude oil, indicating the start of a price war after OPEC talks with Russia failed to reach an agreement on reducing production.
Earlier, Russian Energy Minister Alexander Novak announced that the “OPEC +” agreement will not be formally in place from April 1, but the coalition itself will remain and will operate under the Cooperation Treaty indefinitely and within the framework of this document.
A joint response to the situation in the oil market is expected, if necessary. In future, the alliance may return to regulating the level of production. The minister also said that the next OPEC + meetings will be from May to June 2020.
