In a joint statement, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman called on all OPEC Plus member states to join the group’s agreement to reduce oil production, and said that this was in the interest of the global economy. The invitation came in a statement published today, Thursday, a day after their meeting yesterday in Riyadh.
The statement stated that Russia and Saudi Arabia agreed on the importance of strengthening cooperation in the field of oil and gas, including equipment supplies.
Last week, after an OPEC Plus meeting, Saudi Arabia agreed to extend the voluntary reduction in oil production by one million barrels per day until the first quarter of next year, while Russia said that it would continue to reduce oil exports by 300,000 barrels per day, in addition to reducing its fuel exports by 200,000 barrels per day in the period. From January to March 2024.
OPEC said in a statement after last week’s meeting that the total cuts amount to 2.2 million barrels per day from 8 producers.
But not all OPEC Plus members agreed to extend or deepen the voluntary oil cut, and the latest statement by Putin and Mohammed bin Salman appears to be directed at those countries.
The statement said, “In the field of energy, the two sides praised the close cooperation between them and the successful efforts made by OPEC Plus countries in enhancing the stability of global oil markets.”
They stressed “the importance of continuing this cooperation, and the need for all participating countries to join the OPEC Plus agreement in a way that serves the interests of producers and consumers and supports the growth of the global economy.”
OPEC Plus’ production of about 43 million barrels per day reflects an actual reduction of about 5 million barrels per day with the aim of supporting prices and achieving market stability.
The Saudi Energy Minister, Prince Abdulaziz bin Salman, had suggested that the oil production cuts approved by the OPEC Plus alliance would continue after the first quarter of next year if necessary, and pledged to implement the cuts in full according to the agreement.
The minister said – in an interview with Bloomberg – that these cuts will not be withdrawn except after considering market conditions and using a “gradual approach.”
Meanwhile, the Gulf Cooperation Council said in the final statement of its summit in Doha the day before yesterday that it supports the decisions of the OPEC Plus group “aimed at achieving balance in the oil markets.”
