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OPEC and its Russia-led non-OPEC partners in the production cut pact are currently not discussing changing the terms of their agreement, Russian Energy Minister Alexander Novak said on Monday.
The OPEC+ allies are not currently considering changing the deal, Novak told reporters on the sidelines of a Saudi-Russian investment forum in Riyadh, which is part of a landmark visit of Russian President Vladimir Putin to Saudi Arabia.
Putin and Saudi Arabia’s King Salman bin Abdulaziz Al Saud are discussing today, among other things, coordination of “measures to stabilize oil prices,” the Kremlin said.
Putin is also holding today a separate meeting with Saudi Crown Prince Mohammed bin Salman.
Over the past few years, the meetings between Putin and the crown prince at various international events have served as a kind of pre-approval of the next moves of the OPEC+ coalition.
Asked if the OPEC+ deal is under consideration for revision, Novak told reporters that it is not and that the Saudis and Russians plan to sign on Monday a long-term charter of cooperation.
While Russia and Saudi Arabia reiterate their cooperation, including on the oil market, those leaders of the OPEC+ pact are not yet publicly expressing views that the coalition may need to deepen the cuts that currently expire in March 2020, in view of flagging global oil demand and weakening economies.
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OPEC Secretary General Mohammad Barkindo is not ruling out the possibility of a deeper cut that could be discussed and/or decided at the end of this year.
All options are on the table, including a deeper cut from OPEC and its allies in December, Barkindo said last week.
“The conference will take appropriate, strong, positive decisions that will set us on the path of heightened and sustained stability for 2020,” OPEC’s chief said at the Oil & Money Conference in London.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.