Moscow and Riyadh have found common ground on a possible
agreement with OPEC and a plan to stabilize oil prices after a
meeting in the Saudi capital.
Russian Energy Minister Alexander Novak met with representatives
of Saudi Arabia and other major regional oil producers at the Gulf
Cooperation Council (GCC) conference in Riyadh on Sunday. They
discussed possible means to stabilize the slumping oil prices, and
the parties appeared to come to an agreement.
"We discussed questions related to freezing oil production in
Russia and other countries that may join in," Novak wrote on
Twitter. "But it’s too early to call specific figures. We still
have time until November 30, when OPEC is planning to develop a
joint solution."
Novak’s Saudi counterparts also appeared optimistic.
"Saudi Arabia has started to play an important role to
coordinate between Russia ... and OPEC, specifically the Gulf
countries," Saudi Arabian Energy Minister Khalid al-Falih said at a
press conference quoted by Reuters. "We have managed today...
through a common meeting to reach a common notion to what we can
reach in November."
"Russia is one of the world's biggest oil producers... and is
one of the influential parties in the stability of the oil market,"
Falih said at the start of the GCC conference.
OPEC, or the Organization of Petroleum Exporting Countries, is
due to meet on November 30 in Vienna, where it will discuss
reducing production to help drive up the price of oil, or at least
keep it stable. The fall in oil prices has discouraged investment
in the industry and had a negative effect on the global economy,
including the Russian economy. At an earlier conference in Algiers,
OPEC set a goal of cutting production to 32.5-33 million barrels
per day, though the specifics have yet to be ironed out. By getting
non-OPEC members on board, the cartel hopes to make their scheme
more effective.