MOSCOW: Saudi Arabia and Russia, the world’s two biggest oil exporters, yesterday called for all OPEC+ members to join an agreement on output cuts for the good of the global economy just days after a fractious meeting of the producers’ club.

Hours after Russian President Vladimir Putin went to Riyadh in a hastily arranged visit to meet Saudi Crown Prince Mohammed bin Salman, the Kremlin released a joint Russian-Saudi statement about the conclusion of their discussions.

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 rolling over their voluntary cuts of 1.3 million barrel per day (bpd).

 “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 statement released by the Kremlin 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 statement, which was 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 “adhere” to the OPEC+ agreement.

Saudi state news agency SPA said that the crown prince, known as MbS, and Putin had stressed in their meeting the need for OPEC+ members to commit to the group’s agreement. Sources in the oil market said such an explicit public remark from the Kremlin and the kingdom about “joining” cuts appeared like a hint aimed at specific oil powers.

OPEC+, whose members pump more than 40% of the world’s oil, had to delay its meeting over disagreements about output with African producers, though some oil traders said they suspected a deeper schism inside the group. After the producers decided to cut, oil prices fell to a five month low - a clear sign that the market had expected more forthright action from OPEC+.

Published in The Daily National Courier, December, 08 2023

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