Support The Moscow Times!

Russia, Saudi Arabia to Discuss Oil Cooperation Agreement

Saudi Arabian Oil Minister Ali al-Naimi attends the OPEC seminar ahead of an OPEC meeting in Vienna, Austria.

The oil ministers of Russia and Saudi Arabia plan to discuss a broad cooperation agreement on Thursday at an economic forum in St. Petersburg, two sources said.

Saudi Arabia is the top producer in the Organization of the Petroleum Exporting Countries and the world's top oil exporter, while Russia, which is not an OPEC member, is the second biggest oil supplier to the global markets.

One source said the agreement to be discussed between Russian Energy Minister Alexander Novak and Saudi Oil Minister Ali al-Naimi would not be about joint oil production or export strategy.

Russia has stepped up contacts with OPEC after oil prices plunged last year, but it has dismissed any suggestion it might cut output to prop up prices. OPEC has also refused to curb its output in order to defend market share.

A spokeswoman for Russia's Energy Ministry confirmed the meeting but declined to comment on the agenda.

The talks in Russia's second city follow OPEC's meeting on June 5 in which the group kept its output policy unchanged. Before the meeting, an OPEC delegate said the group would not cut supply unless non-OPEC producers contributed.

Saudi Arabia is pumping oil at a record high as it focuses on keeping market share, while Russian output hit a post-Soviet high of 10.71 million barrels per day in April.

Despite ample supply, oil prices have rallied to almost $65 a barrel in 2015 after sliding toward $45 in January, supported by stronger-than-expected demand and signs the supply glut will ease.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more