In a joint statement released after a high-level meeting between Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman in Riyadh, the world's two largest oil exporters called on all OPEC+ members to join the recently agreed-upon output cuts, Reuters reported. The meeting, which followed a contentious gathering of the OPEC+ alliance, emphasized the importance of cooperation to stabilize global oil markets and support the growth of the global economy.
The OPEC+ nations, including Russia and other key allies, had recently agreed to voluntary cuts amounting to approximately 2.2 mn barrels per day (bpd). Saudi Arabia and Russia had taken the lead by extending their voluntary cuts of 1.3 mn bpd. The joint statement issued by the Kremlin highlighted the successful efforts of OPEC+ countries in enhancing market stability.
The statement highlights the positive collaboration between two entities in the energy sector, praising the successful efforts of OPEC+ countries in stabilizing global oil markets. Emphasizing the significance of ongoing cooperation, the statement underscores the need for all participating countries to join the OPEC+ agreement. This collective effort aims to benefit both producers and consumers, ultimately supporting global economic growth.
While the Russian version used the word "join," the English translation used the term "adhere" to the OPEC+ agreement. The explicit language about "joining" cuts was seen as a message to OPEC+ members who had not made significant cuts, with Iran being the most prominent non-compliant member. Iran, excluded from the cuts, is aiming to boost production to 3.6 mn bpd by March 20 next year despite facing various U.S. sanctions.
The statement released by the Saudi state news agency SPA emphasized the commitment of both leaders to ensure OPEC+ members' adherence to the agreed-upon production cuts. The call for unity appears to be a response to the discord within the OPEC+ group, which led to a delayed meeting due to disagreements, particularly with African producers.
President Putin's recent trip to Riyadh and Abu Dhabi, escorted by Russian fighter jets, remains shrouded in mystery. The Kremlin stated that discussions between Putin and Crown Prince Mohammed bin Salman in Riyadh covered various geopolitical issues, including conflicts in Gaza, Ukraine, and Yemen, the Iranian nuclear program, and deepening defense cooperation.
The joint statement also acknowledged the efforts of Crown Prince Mohammed bin Salman in Riyadh in addressing the crisis in Ukraine, expressing Russian appreciation for his humanitarian and political endeavors. Meanwhile, the OPEC+ alliance faces challenges in maintaining oil prices, as recent supply cuts led to a drop in prices to a five-month low.
Both Putin and Saudi Crown Prince Mohammed bin Salman in Riyadh, controlling a significant share of global oil production, expressed a willingness to cooperate to ensure stable oil prices. The details of the agreement and how the burden of production cuts will be shared among OPEC+ members remain crucial points of discussion.
As Putin returned to Moscow, he held talks with Iranian President Ebrahim Raisi, further underlining Russia's diplomatic engagements across the Middle East.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)