On Thursday, Saudi Arabia and Russia, the two largest oil exporters globally, jointly called for all OPEC+ members to participate in an agreement on output cuts for the benefit of the global economy. This appeal comes shortly after a contentious meeting among the producers’ club.
Russian President Vladimir Putin’s visit to Riyadh for discussions with Saudi Crown Prince Mohammed bin Salman prompted the release of a joint statement emphasizing the successful efforts of OPEC+ in stabilizing global oil markets and stressing the importance of all participating countries adhering to the agreement. The statement suggested a need for cooperation to support the interests of producers, consumers, and the growth of the global economy.
The Kremlin’s version used the word “join,” while the English translation used “adhere” to the OPEC+ agreement. The meeting underscored the commitment of OPEC+ members to the group’s agreement, according to Saudi state news agency SPA. This explicit public remark from both the Kremlin and Saudi Arabia is seen as a hint directed at specific oil-producing nations.
Putin’s overseas trip to Riyadh and Abu Dhabi, accompanied by four Russian fighter jets, remains surrounded by mystery, with the purpose of the visit unclear. The talks between Putin and Crown Prince Mohammed bin Salman covered conflicts in Gaza, Ukraine, and Yemen, the Iranian nuclear program, and deepening defense cooperation.
OPEC+ recently agreed to new voluntary cuts of approximately 2.2 million barrels per day, led by Saudi Arabia and Russia, who extended their voluntary cuts of 1.3 million barrels per day. However, oil prices fell to a five-month low after the decision, indicating market expectations for more decisive action from OPEC+.
The joint appeal by Saudi Arabia and Russia, who collectively control a significant portion of global oil production, suggests an effort to address challenges within OPEC+ and maintain oil prices, which are crucial for both economies. The meeting ended on a positive note, with plans for the next meeting to take place in Moscow.
