Saudi Arabia and Russia reaffirmed their close cooperation in the oil market with a public show of unity at a major industry event in Moscow.
(Bloomberg) — Saudi Arabia and Russia reaffirmed their close cooperation in the oil market with a public show of unity at a major industry event in Moscow.
Speaking in a joint interview with Rossiya 24 state TV, just a few days after the eruption of a conflict between Israel and Hamas lifted crude prices, the top energy officials from the OPEC+ leaders said market uncertainties require careful monitoring.
“This market cannot be left unattended, we need to take all precautionary measures,” Saudi Energy Minister Prince Abdulaziz bin Salman said, comparing the global oil situation to a yo-yo toy, given the recent rise and fall in prices. “We cannot leave it to chance, we need to act preemptively, especially considering the multifaceted challenges.”
The global oil market is “in such a rather sensitive and fragile, but balanced state” thanks to the cooperation within OPEC+, said Russia’s Deputy Prime Minister Alexander Novak. The balance could be affected by slowing global economic growth, particularly in emerging nations, he said.
The two countries are currently making extra supply cuts, over and above those agreed by the Organization of Petroleum Exporting Countries and its allies, to prevent the market going into surplus. Without the OPEC+ output curbs, oil would have dropped to about $50 a barrel, Russian President Vladimir Putin said on Wednesday, compared with the current level of about $85 in London.
(Updates with quotes in the third and fourth paragraphs.)
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