Arab Press

بالشعب و للشعب
Tuesday, Mar 17, 2026

Russia and Saudi Arabia step up oil diplomacy

Russia and Saudi Arabia step up oil diplomacy

President Vladimir Putin and Saudi Arabia Crown Prince Mohammed Bin Salman spoke on Saturday and discussed the OPEC+ cooperation "extensively"

Russia and Saudi Arabia held a second, and unusual, phone call this week to discuss the OPEC+ agreement after officials from the group warned on Friday of the potential for a weaker oil market in 2021.

President Vladimir Putin and Saudi Arabia Crown Prince Mohammed Bin Salman spoke Saturday in what the Kremlin said was a continuation of an October 13 conversation. The two discussed the OPEC+ cooperation “extensively”, the Kremlin said in an emailed statement.

“Both sides reiterated their readiness for further close coordination in this area in the interest of maintaining stability in the world energy market,” the Kremlin said.

The latest call came two days before several OPEC+ ministers are set to discuss the implementation of production cuts during a meeting of the so-called Joint Ministerial Monitoring Committee. The steering group meets monthly to analyse the market, with their recommendation later reviewed by the whole group. The next full OPEC+ ministerial meeting is scheduled for November 30 and December 1.

Brent crude has been largely trading between $40 and $45 a barrel since July, capped by the impact of the coronavirus outbreak on global energy demand, and supported by the OPEC+ production cut. The group includes the members of the Organisation of Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and several independent countries, including Russia and Kazakhstan.

Putin and Saudi leaders haven’t talked twice in the same week since April, when Moscow and Riyadh were trying to reach a deal to end a devastating oil price war. US President Donald Trump ultimately brokered a truce between the two, also joining some of the calls.


Russian President Vladimir Putin


This week’s intensive oil diplomacy comes as coronavirus cases surge in Europe and the Americas, weighing on the outlook for demand over the next few months. Oil traders are now questioning whether the market would be able to absorb the OPEC+ planned production increase of nearly two million barrels a day in January.

“If OPEC goes ahead and adds production as scheduled in January, then we will not draw crude stocks anymore,” Torbjorn Tornqvist, the co-founder of major oil trading house Gunvor Group, said. “I do suspect that the market is pricing now the likelihood that they will postpone the output increase.”

Earlier this week, Russian Energy Minister Alexander Novak and his counterpart from the United Arab Emirates, Suhail Al Mazrouei, said that, for now, the group plans to proceed with the supply boost as scheduled. In private, some OPEC+ delegates debate whether the tapering should be postponed, at least a few months into 2021. A delay of two or three months is a “realistic” possibility, one OPEC delegate said, asking not to be named as the discussions remain private.

Other delegates aren’t so sure, hoping the oil market will be stronger by early December. They point to signs like rapidly falling inventories aboard ships off China or indications that the winter in the northern hemisphere may be colder than normal.


Much could change before the group gathers next month. The November 3 US presidential election could reshape American foreign and energy policy; then there’s Libya, where oil production is recovering after a truce between warring factions. Finally, the trajectory of the pandemic, and the potential for a vaccine or treatment.

Putin and the crown prince also discussed cooperation in fighting the pandemic and the possibility of using Russia’s Sputnik V vaccine in Saudi Arabia, the Kremlin said.

Saudi Arabia Energy Minister Prince Abdulaziz bin Salman is keeping his cards close to his chest, having warned in September that he will ensure “whoever gambles on this market will be ouching like hell”.


Saudi Arabia Energy Minister Prince Abdulaziz bin Salman


OPEC+ officials released a confidential outlook on Friday warning of the potential for the oil market to turn into surplus again in 2021 under what they called a negative scenario of lower demand and higher Libyan oil production.

Under such a view, global oil stockpiles may increase next year by 200,000 barrels a day, potentially sending oil prices lower. This “low scenario,” prepared by the Joint Technical Committee this week, isn’t the group’s central expectation, however. It’s based on the assumption of a “stronger and more prolonged second wave of Covid-19” in the fourth quarter of 2020 and first quarter of 2021.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia Targets South African Professionals in New Recruitment Drive Amid Regional Uncertainty
Formula One Faces Major Financial Hit as Bahrain and Saudi Arabian Grands Prix Cancelled Amid Middle East Conflict
U.S. and Saudi Firms Launch Local Production of Attritable Drone Systems in Saudi Arabia
Saudi Arabia and UAE Warn Rising Gulf Tensions Could Endanger Regional Security
Saudi Arabia Rejects Claims It Encouraged Prolonged War With Iran
Saudi Arabia to Host World’s Largest Single-Cell Protein Plant as Food Security Push Accelerates
Saudi Crown Prince Urges Trump to Continue Military Pressure on Iran
Iran Intensifies Drone Campaign Against Saudi Arabia as Gulf Conflict Escalates
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Washington State Pilot Among Six U.S. Airmen Killed in Military Aircraft Crash Over Iraq
Severe Storm Threat Looms Over Washington as Tornado Risk and Damaging Winds Target Mid-Atlantic
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Saudi Stocks Edge Lower as Tadawul All Share Index Slips Slightly at Market Close
Iranian Missile and Drone Strike Targets Saudi Arabia’s Prince Sultan Air Base Hosting US Aircraft
Saudi Air Defenses Intercept Drone Over Eastern Province as Iranian Strike Campaign Intensifies
Middle East War Reshapes Gulf Economies as Saudi Arabia and Oman Gain Strategic Leverage While UAE Faces Economic Shock
Iranian Ambassador in Riyadh Blames ‘Enemies’ for Attacks Across the Gulf
Israeli Envoy Ron Dermer Reportedly Visits Saudi Arabia for Discussions on Potential Lebanon Talks
Formula One Cancels Bahrain and Saudi Arabian Grands Prix Scheduled for April
Iran’s Ambassador in Riyadh Rejects Claims Tehran Targeted Saudi Oil Facilities
Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ in Major Push for Data-Driven Economy
Saudi Arabia’s 2018 Budget Signals Strong Push for Non-Oil Economic Growth
Pakistan Envoy in Riyadh Says Regional Diplomacy Intensifying to Prevent Wider Middle East War
Saudi Arabia Intercepts Dozens of Drones as Regional Strikes Kill Two in Oman
Saudi Arabia Redirects Oil Exports to Red Sea Ports as Strait of Hormuz Tensions Escalate
Saudi Arabia Intercepts Missile and Drone Barrage as Regional Conflict Intensifies
Iran Expands Drone and Missile Campaign Across Gulf as Conflict With US and Israel Intensifies
Muslims Worldwide Await Saudi Moon Sighting to Confirm Eid al-Fitr 2026 Date
F1 Calendar Faces Major Disruption as Middle East Conflict Threatens Bahrain and Saudi Races
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Saudi Arabia Slashes Oil Output as Strait of Hormuz Crisis Cuts Deep Into Gulf Revenues
Saudi Arabia’s Cultural Scene Presses Ahead as Nation Navigates Regional War
Saudi-Pakistan Defence Pact Faces Real-World Constraints as Iran War Escalates
Saudi Arabia Offers Two Million Barrels of Crude From Red Sea as War Disrupts Gulf Exports
Formula One Faces Tens of Millions in Lost Revenue if Bahrain and Saudi Arabia Races Are Cancelled
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Middle East War
Saudi Arabia Downs Dozens of Iranian Drones in Major Defensive Operation
Saudi Arabia Cuts Oil Output by About Twenty Percent as Iran War Disrupts Gulf Energy Flows
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Iran War
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Saudi Arabia Launches Royal Institute of Anthropology to Examine Social Transformation
Pakistan’s Prime Minister Shehbaz Sharif Arrives in Saudi Arabia for High-Level Talks
×