Oct 14, 2020
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Peskov: the effectiveness of interaction between the Russian Federation and the Saudis on oil has been proven

The negotiations between the leaderships of Russia and Saudi Arabia regarding the stabilization of the oil market have shown their effectiveness, and because of this, this issue remains among the topical topics on the agenda. This was announced by the press secretary of the President of the Russian Federation Dmitry Peskov.

The effectiveness of interaction between Russia and Saudi Arabia in terms of efforts to stabilize oil markets has repeatedly shown itself. This topic continues to be on the agenda of Russian-Saudi contacts, - said the representative of the Kremlin, transfers RIA News.

Thus, Peskov dispelled assumptions that the wording “a detailed exchange of views on the current situation in the world energy markets”, which the Kremlin gave following a telephone conversation between Vladimir Putin and the Crown Prince of Saudi Arabia, Mohammad bin Salman Al Saud, may indicate that between the parties encountered difficulties in reaching a consensus.

On October 13, the Crown Prince of Saudi Arabia, Mohammad bin Salman Al Saud, called. The parties expressed solidarity on the issue of continuing joint work in the energy markets, including in the OPEC + format.

In May, OPEC + cut oil production by 9.7 million barrels per day. Since August, this quota has been reduced to 7.7 million and, according to a further plan, from January 1, 2021, it should decrease to 5.8 million. In other words, oil production should increase by almost another 2 million barrels per day.

The original plan assumed that the parameters of the deal could be revised in December 2021. However, a small exception was already made last summer - the OPEC + countries extended the maximum production cut of 9.7 million barrels per day for a month.

As wrote, oil could reach $ 70 per barrel by 2025. Such data are provided in the optimistic scenario presented in the long-term forecast of the International Energy Agency.

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