MOSCOW: The two biggest oil suppliers in the world, Saudi Arabia and Russia called on all OPEC+ members on Thursday to agree to cut oil production for the good of the world economy. This came just days after an uneasy meeting of the producers’ club.
A joint statement from the Kremlin and Saudi Arabia said that the talks between Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman were over, hours after Putin’s quickly planned trip to Riyadh to meet with Salman.
A group of countries called the Organisation of Petroleum Exporting Countries, Russia, and some other allies decided last week to make new voluntary cuts of about 2.2 million barrels per day (bpd). Saudi Arabia and Russia will continue their 1.3 million barrel per day (bpd) cuts.
“In the field of energy, the two sides commended the close cooperation between them and the successful efforts of the OPEC+ countries in enhancing the stability of global oil markets,” the Kremlin’s statement said.
“They stressed the importance of continuing this cooperation, and the need for all participating countries to join to the OPEC+ agreement, in a way that serves the interests of producers and consumers and supports the growth of the global economy,” the Russian statement said.
“Adhere” was used in the English version of the statement, which was also released by the Kremlin. The word “join” was used in the Russian form.
The Saudi state news agency SPA said that Putin and the crown prince, who is known as MbS, had stressed in their meeting how important it was for OPEC+ members to stick to the deal.
People who work in the oil market said that the Kremlin and the kingdom’s clear public statement about “joining” cuts seemed like a hint at certain oil powers.
Putin will meet with Ebrahim Raisi, the president of Iran, in Moscow on Thursday to talk.
There are still a lot of questions about Putin’s trip to Riyadh and Abu Dhabi, where he was accompanied by four Russian fighter jets. At first, it wasn’t clear why Putin felt the need to make such an unusual trip abroad.
The Kremlin said that Putin and MbS also talked about the wars in Gaza, Ukraine, and Yemen, as well as Iran’s nuclear project and ways to work together more on defence issues.
OPEC+
OPEC+ members produce more than 40% of the world’s oil. Their meeting had to be pushed back because they couldn’t agree on how much oil to produce with African producers. Some oil buyers said they thought there was a deeper split within the group.
Oil prices dropped to their lowest level in five months after the producers agreed to cut back. This was a clear sign that the market had been waiting for OPEC+ to be more honest.
Putin and MbS control one-fifth of the oil that is pumped every day. When Putin got out of his car in the Saudi city, they were seen smiling and shaking hands enthusiastically.
Putin, 71, and MbS, 38, both want and need high oil prices because their economies depend on them. The question for both is how much of the damage they should do to keep prices high, and how to prove that damage.
Putin told MbS that the prince’s planned trip to Russia had been changed at the last minute, which is why he had to go to Riyadh.
Putin smiled and told MbS, “We were waiting for you in Moscow.”
“I know that events forced a correction to those plans but as I have already said nothing can prevent the development of our friendly relations.”
This is what Putin said next: “But the next meeting should be in Moscow.”
Someone translating for the crown prince said that he was ready to do that.
Putin said, “Then we agree.”
