Russia and Saudi Arabia urge OPEC+ countries to join output deal

MOSCOW: Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman have urged all OPEC+ countries to join the group’s agreement on output cuts, saying it would serve the interests of the global economy.

The appeal was made in a joint statement published on Thursday after the two met a day earlier and also said that Russia and Saudi Arabia had agreed it was important to boost cooperation in oil and gas, including in equipment supplies. Following last week’s OPEC+ meeting, Saudi Arabia agreed to extend voluntary oil output cuts of 1 million barrels per day (bpd) into the first quarter, while Russia said it would continue to curb oil exports by 300,000 bpd and additionally reduce its fuel exports by 200,000 bpd in January-March.

The total curbs amount to 2.2 million bpd from eight producers, OPEC said in a statement after the meeting last week.

But not all OPEC+ members agreed to extend or deepen the voluntary oil cuts and the latest statement from Putin and Mohammed bin Salman appears to be appealing to those countries.

“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 said.

“They stressed the importance of continuing this cooperation, and the need for all participating countries to join the OPEC+ agreement in a way that serves the interests of producers and consumers and supports the growth of the global economy.”

OPEC+’s output of some 43 million bpd already reflects cuts of about 5 million bpd aimed at supporting prices and stabilising the market.