Worthy Christian News > World News > Russia, Saudi Arabia Urge Nations To Cut Oil Production

Russia, Saudi Arabia Urge Nations To Cut Oil Production

By Stefan J. Bos, Chief International Correspondent Worthy News

MOSCOW/RYADH (Worthy News) – The world’s biggest oil exporters, Russia and Saudi Arabia, have urged all members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to cut production.

Faced by lower oil prices linked in part to oversupply, Moscow seems determined to boost revenues as it wages a costly war in Ukraine and tries to overcome Western sanctions, according to a Worthy News assessment.

Riyadh also wants to stabilize markets because lower oil prices have impacted revenues, bringing back a deficit as spending remained high. Saudi Arabia has been spending on mega-projects to boost its non-oil economy and reduce its dependency on petroleum exports.

Yet Russia and Saudi Arabia remain heavily reliant on oil revenues, promoting Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman to discuss further oil price cooperation after a tense OPEC+ meeting.

Hours after Putin went to Riyadh in a hastily arranged visit to meet the Saudi crown prince, the Kremlin released a joint Russian-Saudi statement about the conclusion of their discussions.

The Organization of the Petroleum Exporting Countries (OPEC), 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 reductions of 1.3 million bpd.

CONTINUING COOPERATION

“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,” said the statement released by the Kremlin.

“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 “adhere” to the OPEC+ agreement.

Saudi state news agency SPA said that the crown prince, known as MbS, and Putin had emphasized in their meeting the need for OPEC+ members to commit to the group’s agreement.

Reuters news agency quoted oil market sources as saying that such an explicit public remark from the Kremlin and the kingdom about “joining” cuts appeared to be an attempt to send a message to members of the OPEC+ club who had not cut or not cut enough.

A key member of OPEC+ reportedly excluded from the cuts is Iran as its economy has been under various U.S. sanctions since 1979 after the seizure of the U.S. embassy in Tehran.

IRAN PRODUCTION

Iran is reportedly boosting production and hopes to reach an output of 3.6 million bpd by March 20 next year.

After his return to Moscow from Saudi Arabia, Putin on Thursday held talks with Iranian President Ebrahim Raisi in the Kremlin.

Russia’s Deputy Prime Minister Alexander Novak and Defense Minister Sergei Shoigu also participated in the talks.

Putin’s hastily arranged trip to Riyadh and Abu Dhabi, on which he was escorted by four Russian fighter jets, came amid mounting in Russia about oil prices.

The Kremlin also said Putin and MbS discussed the armed conflicts in Gaza, Ukraine, and Yemen, the Iranian nuclear program, and deepening defense cooperation.