Russia, Saudi Arabia discuss oil market, prices

12 Oct, 2023

MOSCOW: Saudi Arabia and Russia, the world’s top two oil exporters, on Wednesday discussed the situation on the oil market and prices amid the escalating conflict between Israel and Hamas, President Vladimir Putin’s top oil official said.

Crude oil prices spiked in the wake of a massive incursion into Israel from Gaza launched by the Palestinian Islamist group on Oct. 7.

Russian Deputy Prime Minister Alexander Novak greeted Saudi Arabia’s Minister for Energy Prince Abdulaziz bin Salman in Moscow on Wednesday ahead of the “Russian energy week” conference in Moscow, which Putin will address.

Novak said he and Prince Abdulaziz discussed the oil market and cooperation within the OPEC+ group of oil producers.

“Of course, (cooperation within OPEC+) was (considered) at our internal meeting, one of the most important topics that we discussed today,” Novak said, according to Interfax news agency. “We are in constant contact and used this opportunity in our meeting to discuss the market situation,” Novak said.

It was not immediately clear what, if any, concrete conclusions were reached. Novak said earlier that the oil price would be discussed.

Saudi Arabia and Russia have coordinated supply cuts in recent years to support oil prices. Kremlin spokesman Dmitry Peskov said it was difficult to overestimate Russia’s coordination with Saudi Arabia and other partners on global oil markets amid the escalating conflict in the Middle East.

He told reporters that the visit of Prince Abdulaziz to Moscow provided an opportunity to look into current affairs.

“Of course, the global oil markets are very sensitive to the events that are currently unfolding around the Palestinian-Israeli conflict, and of course, in this case, our coordination with the Saudis and our other partners ... is difficult to overestimate its importance,” Peskov said.

Russia and Saudi Arabia also held a meeting of their inter-governmental commission.

Novak said at the start of the meeting that Russia was ready to boost oil product supplies to Saudi Arabia. Gulf states, which have their own major refineries, usually re-export Russian fuel.

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