Saudi Arabia: Oil Cuts Show Relations with Russia are Strong

By Staff, Agencies

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman stressed Russia-Saudi oil cooperation is still going strong as part of the OPEC+ alliance, said Wednesday, praising the coordinated decision to remove barrels from the market in an effort to prop up prices.

Oil producers are grappling with falling prices and high market volatility amid fears of a global economic slowdown and Russia’s operation in Ukraine, which has upended economies worldwide.

Earlier this week, Riyadh said it would extend a production reduction of one million barrels per day [BPD], which began in July, to August to boost prices. Meanwhile, its ally in the OPEC+ group of oil producers, Moscow, decided to slash exports by 50,000 BPD in August.

OPEC+ says it does not have a price target and is seeking to have a balanced oil market to meet the interests of both consumers and producers.

Speaking at an OPEC+ seminar in Vienna, Prince Salman said the coordinated announcement was "quite telling.”

“Part of what we have done with the help of our colleagues from Russia was also to mitigate the cynical side of the spectators on what is going on between Saudi Arabia and Russia, he added.

Moscow and Riyadh have not always talked with one voice regarding oil quotas, with Russia less enthusiastic than Saudi Arabia about cutting production as it needs the revenue amid its war in Ukraine and Western sanctions.

Moscow has “committed to this exercise” though, the Saudi energy minister insisted. “We will do whatever is necessary, whatever it takes” to stabilize prices.

The latest cuts, however, have failed to drive up international oil prices.