Saudi Arabia and Russia, the world’s two biggest oil exporters, on Thursday called on all OPEC+ members to join an agreement on output cuts to benefit the global economy, just days after a heated meeting of the producers’ club.
Just hours after Russian President Vladimir Putin traveled to Riyadh on a hastily arranged visit to meet Saudi Crown Prince Mohammed bin Salman, the Kremlin released a joint Russian-Saudi statement concluding 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 extending their voluntary cuts of 1.3 million barrels per day (bpd) extended. .
“In the energy sector, both sides praised the close cooperation between them and the successful efforts of the OPEC+ countries to improve the stability of global oil markets,” the statement released by the Kremlin said.
“They emphasized 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,” it said Explanation in Russian, added.
The Russian version used the word “join,” while an English translation of the statement, also released by the Kremlin, used the word “join the OPEC+ agreement.”
Saudi state news agency SPA said Crown Prince MbS and Putin stressed at their meeting that OPEC+ members must commit to the group’s agreement.
Sources in the oil market said such an explicit public statement from the Kremlin and the kingdom about “merging” the cuts seemed like a reference to certain oil powers.
Putin will hold talks with Iranian President Ebrahim Raisi in Moscow on Thursday.
Putin’s trip to Riyadh and Abu Dhabi, during which he was escorted by four Russian warplanes, is still shrouded in mystery, 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+, whose members produce more than 40% of the world’s oil, had to postpone its meeting because of disagreements with African producers over production, although some oil traders said they suspected a deeper division within the group.
After oil producers decided to cut, oil prices fell to a five-month low – a clear sign that the market had expected clearer action from OPEC+.
Putin and MbS, who together control a fifth of the oil produced each day, were shown smiling and exuberantly shaking hands as Putin stepped 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 burden each person should take on to keep prices high – and how the burden can be checked.
At the talks with MbS, Putin said a planned visit by the prince to Russia had been changed at the last minute, prompting him to visit Riyadh.
“We were expecting you in Moscow,” Putin said to MbS with a smile.
“I know that events have forced a correction of 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 willing to do so.
“Then we agree,” Putin said.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Source : www.ndtv.com