The Kremlin said on Tuesday that implementing the oil production cuts agreed upon by the OPEC+ group last week will take some time, at a time when the Gulf states announced their support for the group’s decisions, according to what Reuters reported.
And he said Kremlin spokesman Dmitry Peskov “The reality is that there are elements of inertia in the oil market, it is very large and heavy. Therefore, flow is sometimes delayed. Hence, coordination will continue.”
The Kremlin confirmed that Russian President Vladimir Putin will visit Saudi Arabia and the UAE tomorrow, Wednesday He will host Iranian President Ebrahim Raisi in Moscow the next day.
The Kremlin said that Putin and Saudi Crown Prince Mohammed bin Salman will discuss cooperation within the OPEC Plus alliance during his visit to Saudi Arabia.
For its part, the Russian Interfax news agency quoted Peskov as saying that Putin intends to discuss the oil market, Israel and Palestine during his visit.
Putin’s visit comes after OPEC Plus agreed last Thursday on additional voluntary production cuts of about 2.2 million barrels per day, including extending the current Saudi and Russian voluntary cuts of 1.3 million barrels per day.
The last time Putin visited Saudi Arabia and the UAE was in 2019, according to the official TASS news agency.
These statements came at a time when Saudi Energy Minister Prince Abdulaziz bin Salman suggested that the oil production cuts approved by the OPEC+ alliance would continue after the first quarter of next year if necessary, and pledged to implement the cuts in full according to the agreement concluded last Thursday.
The minister said – in an interview with Bloomberg – that these cuts will not be withdrawn except after considering market conditions and using a “gradual approach.”
He added that although Russia may not reduce its production, it is implementing its restrictions on exports. If Moscow fails to fulfill its pledges, as it did earlier this year, it has been transparent and promised compensation.
Meanwhile, the Gulf Cooperation Council said in the final statement of its summit in Doha on Tuesday that it supports the decisions of the OPEC Plus group “aimed at achieving balance in the oil markets.”
Oil prices fell by 2% last week after the OPEC Plus announcement, while prices recorded no significant change on Tuesday.
By 13:01 GMT, crude futures contracts fell 0.3% to $77.78 per barrel, while US West Texas Intermediate crude futures also fell 0.3% to $72.83 per barrel.
