Kremlin denies Russia, Saudi Arabia wage oil price war

The Kremlin Palace in central Moscow is pictured on June 20, 2019. (Xinhua/Shi Hao)

Russia and Saudi Arabia do not engage in price wars in the oil market, the Kremlin said Friday.

"We have good relations with Saudi Arabia, we are partners, and we don't think that anyone should interfere in this relationship," Kremlin spokesman Dmitry Peskov told reporters.

Peskov said that there had been a tendency to reduce global oil consumption "before this trigger in the form of a coronavirus provoked this ideal storm."

He said despite low oil prices, it is not a disaster for Russia, especially in the medium term, because the country has a solid margin for several years to fulfill all social obligations and development plans.

Oil prices plunged after the Organization of Petroleum Exporting Countries (OPEC) and other oil producers, including Russia, failed to extend an agreement on reducing output.