Russian, Saudi oil ministers to meet
October 19, 2016, 5:00 pm

Alexander Novak seen here at a meeting of OPEC and non-OPEC countries in a bid to lower production. That meeting in April failed to reach consensus [Xinhua]

“[The] ministers plan to discuss joint scientific research projects. The key point in the agenda will be the issue of [increasing] investments [in the] fuel and energy sectors of Russia and Saudi Arabia, including oil production, power engineering, renewable energy sources and other projects,” the Ministry said in a statement.

Last week, Saudi Energy Minister Khalid Falih had said he planned to meet Novak to discuss last month’s agreement among oil producers to cap production.

At the end of last month, OPEC producers agreed on preliminary discussions around a deal that would limit production to a range of between 32.5 million barrels per day and 33 million bpd.

Earlier this week during a televised interview, Novak said he believed freezing global crude oil production for six months with an option for an extension would be the most appropriate and efficient way to re-balance the market.

Russian and Saudi officials have been meeting more often in the past few weeks as both countries find common ground – rather than bitter rivalry – in trying to bring output down and oil prices up.

Russian President Vladimir Putin late on October 10 announced that his country is ready to back a Saudi Arabian plan to curb oil production output in a bid to raise subdued oil prices.

We are “ready to join in joint measures to limit output and calls on other oil exporters to do the same,” Putin said.

Putin made the announcement while attending the world energy Congress in Istanbul, Turkey earlier in the month.

He added that a cut or production freeze was the best option to stabilize oil prices.

Both Russia and Saudi Arabia are considered the world’s largest oil producers and an agreement between the two energy giants is likely to create a paradigm shift in energy markets.

Putin’s remarks came shortly after Saudi Energy and Industry Minister Khalid Al-Falih said he was optimistic oil prices could rise to $60 a barrel by the end of 2016.

The BRICS Post with inputs from Agencies