Putin And Saudi Crown Prince Discuss OPEC+ Oil Deal

• In a telephone conversation, Putin and Mohammed bin Salman discussed ensuring stability in the energy market.
• Both sides expressed their appreciation of the high level of cooperation within the OPEC+ framework.
• While the Kremlin suggested the talks were positive, Saudi Arabia has spoken of the lack of transparency in Russian production.

Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman discussed in a telephone conversation ensuring stability in the energy market and praised the cooperation within the OPEC+ deal, the Kremlin said.

“They held an in-depth discussion of ensuring stability on the global energy market. Both sides expressed their appreciation of the high level of cooperation within the framework of OPEC Plus, which allows them to take prompt and effective measures to maintain the balance of oil demand and supply,” a statement from the Kremlin reads.

Putin and the crown prince, who hold regular phone conversations discussing cooperation, including in the oil market, held the latest talks days after the OPEC+ meeting, at which Saudi Arabia is said to have expressed frustration with the lack of transparency about Russia’s current oil production.

At that meeting, the OPEC+ producers decided to keep the current cuts until the end of 2024, while OPEC’s top producer and the world’s largest crude oil exporter, Saudi Arabia, said it would voluntarily reduce its production by 1 million bpd in July, to around 9 million bpd. The Saudi cut could be extended beyond July, Saudi Energy Minister Prince Abdulaziz bin Salman said.

Russia, for its part, has said it would reduce its oil production by 500,000 bpd from March. The 500,000 bpd cuts were extended until the end of 2023, and after Sunday’s meeting – to the end of 2024. 

However, Russian crude oil export data in recent weeks have not reflected any cuts—on the contrary, Russian crude oil exports by sea have been rising.

Russia has stopped reporting oil production levels, and the market and analysts must rely on vessel-tracking data, trade sources, and import statistics in China and India about the amount of Russian supply.

After the OPEC+ meeting in Vienna this weekend, Prince Abdulaziz bin Salman said, referring to Russia, “We discussed with Russia the issue of its production and asked it to clarify its data, and we have strengthened the concept of transparency with Russia about its oil production figures.”

By Tsvetana Paraskova for Oilprice.com

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