Saudi Arabia, Russia to Continue Oil Coordination

Ragya Wael October 13, 2023

2 minutes read

Saudi Arabia and Russia to continue Oil Coordination — Russian President Vladimir Putin next to Saudi King Salman bin Abdulaziz

Russian President Vladimir Putin, during the Russian Energy Week (REW) 2023, lauded the Saudi Crown Prince’s role in energy markets, affirming that Russia will resume cooperation with Saudi Arabia in oil and energy fields.

“Saudi Crown Prince plays a major role in the energy market and we will continue our cooperation… We trust the Crown Prince,” stated Putin on Wednesday during the REW that is being held in Moscow.

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Necessity of Oil Cooperation Between Opec+ Members

Aiming to predict the situation in oil markets, Putin said that coordination between Opec+ countries will continue.

Opec+ is a group of 23 oil-exporting countries including some countries that are considered to be the world’s oil barrel. They hold the strings of oil field in deciding how much crude oil to sell on the world market.

Proceeding from the necessity of interaction between suppliers with transparent public terms for oil market stability, Russia is working with its partners in the framework of Opec+,” said Putin, adding “I firmly believe that the coordination between Opec+ partners will continue given its importance for predictability of the oil market and for the interests of all mankind”.

Further stressing this point, the president said that if it were not for coordinated cuts in production, oil prices could have dropped to less than $50 per barrel.

Middle East conflict’s effect on oil

Russia’s Deputy Prime Minister Alexander Novak said that KSA and Russia discussed the current situation of oil market and crude prices amidst tension-building struggle between Israel and Hamas.

“We obviously discuss those issues. Any such events in the world may somehow affect the situation with consumption of energy resources one way or the other,” said the Deputy Prime Minister.

The unfolding events in Gaza and Israel resulted in a 4% or more increase in oil prices to reach $88 amid speculations that further escalation could affect supplies.

The Kremlin spokesperson said it is hard not to coordinate with KSA and other partners regarding global oil markets amidst escalating conflict in the Middle East.

He told the journalists on the phone that the visit of the Saudi Minister of Energy to Moscow was a great chance to discuss current events.

Saudi Russian Meeting on Sidelines of REW

Novak met Saudi Minister of Energy Abdul Aziz bin Salman in Moscow on Wednesday prior to the REW conference and discussed the situation of the oil market and cooperation in framework of Opec+.

“Regarding cooperation in field of energy, I would like to say that Russia is ready to increase oil supply to KSA,” he said on the sidelines of REW, according to Interfax, a Russian News Agency.

“Of course we discussed cooperation in framework of Opec+ during our Industry-related meeting and it is one of the most significant topics that we have discussed today,” said Novak, as per Interfax.

Nuclear Energy and Industry:Further Areas of Cooperation

Touching on nuclear energy, Russia’s Deputy Prime Minister said that his country is ready to cooperate with the Kingdom in field of peaceful uses of nuclear energy as well as agricultural and food products’ supply.

Russian companies in different industries are considering making KSA a home for their production.

“Russian companies have the necessary skills to advance cooperation with Saudi partners in top-priority industrial sectors. Mining, car, medical, chemicals, medical equipment, oil equipment and energy equipment companies are looking forward to producing in the Kingdom,” explained Novak.