A photo captured on December 6 shows Saudi Crown Prince Mohammed bin Salman (right) and Russian President Vladimir Putin walking side by side at a summit in Riyadh, Saudi Arabia’s capital [Photo=AFP·Yonhap News]
On December 7, Saudi Arabia and Russia, the world’s largest oil exporters, urged member countries of the Organization of Petroleum Exporting Countries Plus (OPEC+) to participate in an agreement to cut oil production.
According to Reuters, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman issued a joint statement following their meeting the day before.
The Kremlin announced through a statement, “In the energy sector, both sides highly appreciate the successful efforts of OPEC+ members to enhance close cooperation between the two countries and the stability of the global oil market.” It added, “They emphasized the importance of continuing cooperation and the need for all participating countries to be part of the OPEC+ agreement.”
During his meeting with President Putin, the Saudi state news agency SPA reported that Crown Prince bin Salman emphasized the need for OPEC+ members to comply with the production-cut agreement.
Oil market insiders interpreted this joint statement as a warning to OPEC+ members who have refused to cut production. As African countries reject production cuts, it has led to a postponed OPEC+ meeting.
Last week, OPEC+ agreed to implement a daily cut of approximately 2.2 million barrels in the first quarter of next year. About 1.3 million barrels are an extension of voluntary cuts by Saudi Arabia and Russia. Despite these efforts to cut production, oil prices have declined steeply, falling to their lowest levels in the past five months.
Iran is the only OPEC member country exempted from the production cuts. Iran has set a goal of reaching a daily production volume of 3.6 million barrels by March next year. As President Putin met with Iranian President Ebrahim Raisi in Moscow on the same day, any changes in Iran’s production volume could be a point of interest in the oil market.
The Kremlin also announced that President Putin and Crown Prince bin Salman discussed the Gaza Strip, Ukraine, the Yemen conflict, Iran’s nuclear program, and deepening defense cooperation.
By. Ju Hye Yoon
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