14.05.2021

The deal between Germany and Saudi Arabia

The deal between Germany and Saudi Arabia on the supply of several hundred tanks, is likely to be disrupted. It is reported by the German newspaper Bild.

Negotiations on the supply of Leopard 2 tanks was conducted not one year, although the official information has not been confirmed, which is normal for contracts in the military sphere. Saudi Arabia was ready to buy up to 800 tanks and laid down in its budget the amount to $25 billion that could be spent on import of these vehicles.

Germany has been very cautious when it comes to military contracts.

However, the new Minister of economy of Germany, Sigmar Gabriel, spoke out against signing a deal with Riyadh. Sources Bild suggest that a social Democrat Gabriel has openly stated that the sale of tanks to the autocratic regime may not be approved.

Moreover, two years ago, when I started negotiations, he and many other social Democrats, and representatives of a number of leftist parties, said that blocking the deal.

Saudi Arabia has been accused of human rights violations and suppression of freedom of speech. Germany is trying to resist the deals in the military sphere with States that have gained notoriety. German authorities do not want their decisions were compared with the Germany of Adolf Hitler.

The Leopard 2 tanks are produced by companies Kraus-Maffei Wegmann (platform) and Rheinmetall (gun).

Novak and al-falih agreed on further coordination of actions

The Russian Minister of energy Alexander Novak and Minister of energy of Saudi Arabia Khalid al-falih discussed by telephone the situation in the oil market.

The Ministers agreed to continue coordination, discussed plans of countries in the light of the objectives of OPEC to increase oil production by 1 million barrels a day.

“The Ministers exchanged information about their countries’ plans for the production of oil to meet demand in the summer period, in the light of the decisions taken in recent months at the 174th meeting of the OPEC conference and the 4th Ministerial meeting of OPEC and non-OPEC States in Vienna”, – stated in the message of Ministry.

In addition, a question was raised about changing the monitoring methodology , taking into account the fact that the level of execution of the agreement OPEC+, it was decided to reduce up to 100%.

U.S. secretly asked Saudi Arabia to impact the price of oil in the world media

The day before the US withdrew from the nuclear deal with Iran, one of the officials of the administration of the American President secretly turned to Saudi Arabia with a request to stabilize the price of oil, if they suddenly dramatically increase. This is with reference to three sources according to Reuters.

According to the Agency, Washington worried that oil supplies from Iran will be disrupted due to the termination of the nuclear deal and sanctions, and this in turn will lead to higher prices for petroleum products.

In fact, the U.S. asked Saudi Arabia to increase oil production.

“A senior representative of the US administration called Saudi crown Prince Mohammed bin Salman, to make sure that Washington can count on Riyadh”, – reports the Agency.

One of the sources said that the call took place on 7 may. The other two did not indicate the date of the call.

A spokesman for the White house declined to comment on the question of whether there has been a call. The senior official representative of Saudi Arabia confirmed this particular conversation, but said, “We were aware of the decision before the announcement… We are always talking to US about the stability of the oil market”.

The OPEC countries have adopted hands-free solution for the extraction of oil: as prices have changed

Oil prices decline on Monday after the countries-exporters of oil (OPEC) on Friday, June 22 decided to increase the volume of oil production in the framework of the global agreement.

9:55 in Kiev futures for North sea Brent blend fell by 1.67% to $74,06 per barrel. Futures contracts for WTI traded near $68,39 per barrel, or 0.29 percent below the previous close.

The OPEC countries on Saturday agreed with key oil-producing States to increase production since the beginning of July, while Saudi Arabia has promised a “notable” increase in production, although he did not mention specific figures.

According to analysts, the balance of supply and demand on the world oil market will be good enough this year.

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