Oct 13, 2020
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Putin discussed with the Crown Prince of Saudi Arabia the situation with OPEC +

Vladimir Putin
Vladimir Putin

Russian President Vladimir Putin received a call from the Crown Prince of Saudi Arabia, Mohammad bin Salman Al Saud. This was reported by the Kremlin press service. The parties expressed solidarity on the issue of continuing joint work in the energy markets, including in the OPEC + format.

A positive assessment was given to the achieved level of bilateral relations, and a mutual disposition was expressed for the further development of Russian-Saudi cooperation in various fields. A thorough exchange of views was held on the current situation in the world energy markets. The importance of continuing joint work, including in the OPEC + format, was emphasized, – celebrated in the message.

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, due to the increase in the number of cases of coronavirus in the world, the Saudis are considering the possibility of canceling OPEC + plans to increase oil production from the beginning of next year, the Wall Street Journal reported, citing sources. It is noted that the kingdom is worried about the increase in the number of people infected with COVID-19 in many regions of the world, as well as the growth of oil production in Libya. According to one of the sources, the world market simply will not be able to accept the additional 2 million barrels per day.

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