Russia, Saudi Arabia Discuss Volatile Oil Market

Monday, October 19, 2020

The world's two largest oil exporters, Russia and Saudi Arabia, are in talks on how to support volatile oil markets, the Kremlin said on Monday as rising coronavirus infections worldwide curb fuel demand.

An OPEC+ ministerial monitoring committee, comprising Saudi Arabia and Russia, is meeting on Monday. The panel could discuss rolling over existing oil cuts for 2021, but is unlikely to make a formal recommendation, two OPEC+ sources told Reuters.

Russian President Vladimir Putin and Saudi Arabia's Crown Prince Mohammed bin Salman held two phone calls last week to discuss oil markets.

"Those markets are volatile and we are at an active stage of cooperation, exchange of opinions. That is why it requires regular contacts," the Kremlin spokesman Dmitry Peskov told reporters.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, have been reducing output since January 2017 in an effort to balance the market, support prices, and reduce inventories.

They are curbing production by 7.7 million barrels per day (bpd), down from cuts totaling 9.7 million bpd, and are due to reduce the cuts by a further 2 million bpd in January.

Several OPEC watchers, including analysts from U.S. investment bank J.P. Morgan, have said a weak demand outlook could prompt OPEC+ to delay any easing of the reductions. The United Arab Emirates and Russia, however, have said that cuts would be eased as planned.

The group will meet again on Nov. 30-Dec. 1.

OPEC+ experts last week discussed the risk of a persistent supply overhang in 2021 in the event of a prolonged and severe second wave of the COVID-19 pandemic.

"Demand itself is still looking anemic," OPEC Secretary-General Mohammad Barkindo said last week. 

(Reporting by Alex Lawler and Ahmad Ghaddar in London, Vladimir Soldatkin in Moscow and Rania El Gamal in Dubai; Editing by David Goodman and Barbara Lewis)

Categories: Energy Russia Activity Production Saudi Arabia Oil Price

Related Stories

Sapura Scoops Petrobras Contract for Pan-Malaysia Offshore Services

Keppel Reclaiming Control of 13 Rigs to Cash In on Offshore Drilling Market's Growth

Impending Shortage of Jackups within Ageing Asia Pacific Fleet

Equinor Tries Again for a Japan Offshore Wind Lease

Petronas to Proceed with South China Sea Oil and Gas Exploration

ABS Gives Its Blessing to SHI’s Ammonia FPSO Design

CNOOC Starts Production from Deepwater Gas Project in South China Sea

CNOOC Brings Online Another South China Sea Field

Heat Drives Asian LNG Spot Price Spike

ExxonMobil to Transfer Operations of Two Malaysian PSC Assets to Petronas

Current News

Sapura Scoops Petrobras Contract for Pan-Malaysia Offshore Services

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

US Firm Finds Chinese Partner to Deliver Mobile Offshore Drilling Units

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Keppel Reclaiming Control of 13 Rigs to Cash In on Offshore Drilling Market's Growth

Global Offshore Wind Stumbles to the End of '24

Seatrium Delivers Fifth Jack-Up to Borr Drilling

Malaysia's FPSO Firm Bumi Armada Eyes Merger with MISC’s Offshore Unit

Global OTEC Presents OTEC Power Module for Remote Offshore Platforms

Beam’s AI-Driven AUV to Hit Offshore Wind Market in 2025

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com