Saudi Arabia calls for emergency Opec+ meeting

Saudi Arabia has called for an emergency meeting of Opec+ and "other countries" to try to reach "a fair solution" to rebalance oil markets.

The short statement — published today by the Saudi state-owned Spa news agency — does not specify which other countries might participate.

Oil prices have plummeted recently, triggered by the collapse of the Opec+ output restraint deal coinciding with a coronavirus-inspired plunge in demand.

Riyadh's call for an emergency meeting followed a tweet from US president Donald Trump, in which he said he "expects" and "hopes" that Saudi Arabia and Russia will cut output by 10mn-15mn bl. It has yet to be clarified if that means 10mn-15mn b/d.

Trump announced the potential supply cut after talking with Saudi crown prince Mohammad bin Salman, who he said had spoken with Russian president Vladimir Putin.

Oil futures rose sharply in response. But some Opec+ delegates described Trump's tweet as "unclear", saying it is uncertain where such a cut would come from or if it would include US production.

Meanwhile, several delegates have signalled that there is internal support among Opec+ members for an emergency meeting. Iraq wants it to be expedited in order to restore stability to oil markets, an Iraqi oil ministry spokesman said.

Delegates expect the meeting to take place via teleconference.

Saudi Arabia's call for action from Opec+ comes as questions are raised over the country's plan to boost crude supply to 12.3mn b/d this month, with European buyers mulling cancellations of excess nominations.

State-controlled Saudi Aramco is due to release its official crude formula prices for May this weekend, according to two market participants. Several traders are expecting a rollover from April prices or further discounts, but still forecast lower nominations next month because of collapsing refinery runs.

By Rowena Edwards, Nader Itayim and Ruxandra Iordache