Active Stocks
Thu Feb 29 2024 15:49:54
  1. Kotak Mahindra Bank share price
  2. 1,690.80 0.43%
  1. Axis Bank share price
  2. 1,075.70 0.10%
  1. Tata Steel share price
  2. 140.90 0.11%
  1. Power Grid Corporation Of India share price
  2. 282.55 1.07%
  1. ITC share price
  2. 406.50 -0.51%
Business News/ Markets / Commodities/  Russia, Saudi Arabia urge all OPEC+ nations to join oil output cuts ‘for the good of global economy’
BackBack

Russia, Saudi Arabia urge all OPEC+ nations to join oil output cuts ‘for the good of global economy’

The OPEC+ agreed last week to new voluntary cuts of about 2.2 million barrels per day, led by Saudi Arabia and Russia rolling over their voluntary cuts of 1.3 million barrel per day.

Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman attend a meeting in Riyadh, Saudi Arabia on December 6, 2023 (Sputnik/Aleksey Nikolskyi/Kremlin via REUTERS)Premium
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman attend a meeting in Riyadh, Saudi Arabia on December 6, 2023 (Sputnik/Aleksey Nikolskyi/Kremlin via REUTERS)

Saudi Arabia and Russia, the world's two biggest oil exporters, on Thursday, December 7, called for all member nations of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) to join an agreement on output cuts ‘for the good of the global economy’.

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. Discussions over possible coordinated actions on global oil markets was one of they key things of the meeting's agenda between the two countries.

Also Read: Putin to visit Saudi, UAE on December 6 after OPEC+ cuts, host Iran President: What's on agenda?

"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 and Putin had stressed in their meeting the need for OPEC+ members to commit to the group's agreement. 

According to a report by news agency Reuters, 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.

Also Read: Oil ticks higher from six-month low over concerns of weak economic outlook; Brent at $74/bbl

What did OPEC+ decide at its meeting?

The OPEC+ 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 bpd.

OPEC+, whose members pump more than 40 per cent 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 deal 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 a more forthright action from OPEC+. Russia and Saudi Arabia- the countries which together control one-fifth of the oil pumped each day, want - and need - high prices for oil - the lifeblood of their economies. 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Commodity News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 07 Dec 2023, 06:49 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App