Saudi Arabia will collapse oil prices to $50 per barrel if OPEC+ member countries continue to violate production limits, the country’s oil minister, Abdelaziz bin Salman, warned during a conference call. He emphasized the role played by two states in violating the agreements. These states are Iraq, which exceeded quotas by 400,000 barrels per day in August, and Kazakhstan, which plans to increase production at the Tengiz field with an output of 720,000 barrels per day.
“It makes no sense to increase production volumes if there is no place for it on the market. Some should adhere to their obligations to OPEC+,” one of the delegates noted.
As one of the largest oil exporters, Saudi Arabia has resources that are powerful enough to influence prices. A price drop to $50 could lead to severe consequences for oil-producing countries with higher production costs, such as the Russian Federation. When the price of Brent oil fell below $70 in the first half of September, Russian Urals traded at $57–60 per barrel.