Russia, Saudi Arabia Not Engaged in Price Wars - Kremlin

MOSCOW (Sputnik) - Russia and Saudi Arabia are not engaged in any price war on the oil market, the global situation is unfortunate for oil prices, Kremlin Spokesman Dmitry Peskov said Friday.

"Russia is not in any war with anyone and we proceed based on the statement by the [Saudi] royal family that Saudi Arabia is not engaged in price wars either," Peskov told reporters when asked to comment on a recent statement by LUKOIL vice president, Leonid Fedun, who suggested there was such a conflict.

"There are no price wars between Russia and Saudi Arabia. There is a price situation that is unfortunate for many countries, which was triggered, we have mentioned these factors. We have a good relationship with Saudi Arabia, and we do not think anyone should meddle in that," Peskov said.

The spokesman declined to comment on any potential sanctions, calling reports about them "a seasonal flare-up, triggered by the coronavirus, among those who suffer from russophobia."

On 19 March, international agency Fitch Ratings lowered its forecast for the average Brent crude price this year to $41 per barrel. Earlier in the month, S&P Global Ratings also downgraded the Brent crude price forecast for 2020 to $40 per barrel from the previously expected $60.

Earlier in the week, oil prices dropped following the March 6 OPEC+ meeting in Vienna which sparked the crash. OPEC+ failed to reach an agreement amid a Saudi push to raise production cuts by 1.5 million barrels per day through the end of 2020, on top of the 2.1 million barrels per day in cuts already agreed upon.