Saudi, Russia, Kazakhstan hold talks ahead of weekend OPEC+ meeting

DUBAI/MOSCOW: Top OPEC+ ministers have held further talks ahead of the oil producer group’s weekend meeting to set output policy, which OPEC+ sources say will discuss a further delay to a planned oil output hike that is due to start in January.

Saudi Energy Minister Prince Abdulaziz bin Salman held a meeting by phone with Kazakh Energy Minister Almasadam Satkaliyev and Russian Deputy Prime Minister Alexander Novak, who is on an official visit to Kazakhstan, the Saudi state news agency reported.

The three nations on Wednesday stressed the importance of full commitment to the voluntary oil production cuts agreed by OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies.

“They also stressed the importance of cooperation among OPEC+ member countries and full adherence to the agreement, including the voluntary production cuts agreed upon by the eight participating countries, as well as compensating for any excess production,” SPA reported.

OPEC+, which pumps about half the world’s oil, had planned to gradually roll back oil production cuts with small increases over many months in 2024 and 2025. But a slowdown in Chinese and global demand and rising output outside the group have put a dampener on that plan.

A day earlier the Saudi minister and Novak met with Iraqi Prime Minister Mohammed Shia al-Sudani in Baghdad. Two sources from the producer group told Reuters on Tuesday that OPEC+ members are discussing a further delay to a planned oil output hike that was due to start in January, ahead of Sunday’s meeting to decide policy for the early months of 2025.

OPEC+ sources have said the output hike could be delayed until the first quarter, while analysts at Commerzbank expect it could be postponed until at least the end of the first quarter.