Axar.Az Logo

Russia, Saudi Arabia take control of oil output ahead of OPEC talks

Home page World
12 Punto 14 Punto 16 Punto 18 Punto

Meeting on the sidelines of the G20 summit in the Argentine capital of Buenos Aires on Saturday, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman agreed to extend into 2019 their OPEC+ agreement to manage the oil market. reports citing Sputnik.

The oil market entered a downward spiral in early October, and by the end of November, oil prices hit eight-month lows, with Brent crude falling below $62 a barrel.

The reason behind the downtrend is a record increase in the volume of commercial oil reserves in the United States, and in addition, the actual increase in production by Saudi Arabia and other OPEC countries.

In light of such developments, oil traders were concerned over the outcome of the upcoming discussion of the OPEC+ strategy in 2019 on 5-7 December.

The prospect that OPEC and non-member countries would decide not to cut output, seemed quite real, and in this case, the market would be “inundated” with excess supply, and prices would return to the 2014 levels, market participants feared.

The meeting between Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman on the margins of the G20 summit in Buenos Aires put an end to the uncertainty. As a result of the summit, the two agreed to extend a crucial agreement on oil output – OPEC+.

Although there are no specific figures on volumes so far, the market reacted immediately: Brent prices surged by five percent. Analysts point out that Saudi Arabia and Russia are the key parties to the OPEC + agreement and almost singlehandedly determine the cartel’s decisions.

2018.12.04 / 21:35
See also

Erdogan speaks to media after attending Friday prayers

He that troubleth his own house - John Samuel Tieman

The US cannot take us out of this program - Iron

Turkey's call from Qatar to Egypt and Saudi Arabia

The Turkish army destroyed the terrorists

3,915 died of COVID-19 in India over the past day

377 died of coronavirus in Russia over the past day

US, Ukraine agree to strengthen cooperation in defence

Russian troops still in, around Ukraine: NATO chief

5 civilians wounded in a bomb attack in Syria

Xocalı soyqırımı — 1992-ci il Bağla
Bize yazin Bağla