Russia, Saudi Arabia urge all OPEC+ powers to join oil cuts

MOSCOW:

Saudi Arabia and Russia, the world’s two biggest oil exporters, on Thursday called on all OPEC+ members to join a deal to cut output for the good of the global economy, days after the producers’ club met fractiously.

Hours after Russian President Vladimir Putin flew to Riyadh on a hastily scheduled visit to meet Saudi Crown Prince Mohammed bin Salman, the Kremlin issued a joint Russian-Saudi statement on the conclusion of their talks.

The Organization of the Petroleum Exporting Countries, Russia and other allies agreed last week to new voluntary cuts of about 2.2 million barrels per day (bpd), led by Saudi Arabia and Russia to replace their voluntary cuts of 1.3 million barrels in day (bpd). .

“In the field of energy, the two sides praised the close cooperation between them and the successful efforts of the OPEC+ countries to strengthen the stability of global oil markets,” said the statement released by the Kremlin.

“They stressed the importance of continuing this cooperation and the need for all participating countries to join the OPEC+ agreement in a way that serves the interests of producers and consumers and supports the growth of the global economy,” the statement said. in Russian, added.

The Russian version used the word “participation,” while an English translation of the statement, also released by the Kremlin, used the word “participation” in the OPEC+ deal.

Saudi Arabia’s state news agency SPA reported that the crown prince, known as MbS, and Putin stressed in their meeting the need for OPEC+ members to commit to the group’s deal.

Sources in the oil market said such an explicit public remark by the Kremlin and the kingdom to “engage” in the cuts seemed like a hint that it was aimed at specific oil powers.

Read also: Russia’s Putin meets Saudi crown prince in whirlwind Gulf visit

Putin will hold talks with Iranian President Ebrahim Raisi in Moscow on Thursday.

Mystery still surrounds Putin’s trip to Riyadh and Abu Dhabi, in which he was escorted by four Russian fighter jets, and it was not immediately clear what specific issue was so important to Putin that he made a rare trip abroad.

The Kremlin said Putin and MbS also discussed the conflicts in Gaza, Ukraine and Yemen, Iran’s nuclear program and deepening defense cooperation.

OPEC+

OPEC+, whose members pump more than 40% of the world’s oil, had to delay its meeting due to production disputes with African producers, although some oil traders said they suspected a deeper rift within the group.

After producers decided to cut, oil prices fell to a five-month low – a clear sign that the market expected more sincere action from OPEC+.

Putin and MbS, who together control a fifth of the oil pumped every day, were seen smiling and sharing a sweeping handshake as Putin got out of his car in the Saudi capital.

Both MbS, 38, and Putin, 71, want – and need – high prices for oil – the lifeblood of their economies. The question for both is how much of the burden each should bear to keep prices up – and how to verify the burden.

In talks with MbS, Putin said a planned visit by the prince to Russia was changed at the last minute, resulting in him visiting Riyadh.

Reading: Oil stabilizes after drop on OPEC+ cuts

“We were waiting for you in Moscow,” Putin told MbS, smiling.

“I know that events have forced a correction in these plans, but as I have already said nothing can prevent the development of our friendly relations.”

Putin then said: “But the next meeting should be in Moscow.”

The crown prince said through a Russian translator that he was of course ready to do so.

“Then we agree,” Putin said.