Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Russia, Saudi Arabia discuss oil market, prices amid Israel-Hamas war

Published 11/10/2023, 07:35
Updated 11/10/2023, 11:20
© Reuters. FILE PHOTO: Deputy Prime Minister of Russia Alexander Novak arrives for an OPEC meeting in Vienna, Austria, June 4, 2023. REUTERS/Leonhard Foeger/File Photo
CL
-

By Vladimir Soldatkin and Olesya Astakhova

MOSCOW (Reuters) -Saudi Arabia and Russia, the world's top two oil exporters, on Wednesday discussed the situation on the oil market and prices amid the escalating conflict between Israel and Hamas, President Vladimir Putin's top oil official said.

Crude oil prices spiked in the wake of a massive incursion into Israel from Gaza launched by the Palestinian Islamist group on Oct. 7.

Russian Deputy Prime Minister Alexander Novak greeted Saudi Arabia's Minister for Energy Prince Abdulaziz bin Salman in Moscow on Wednesday ahead of the "Russian energy week" conference in Moscow, which Putin will address.

Novak said he and Prince Abdulaziz discussed the oil market and cooperation within the OPEC+ group of oil producers.

"Of course, (cooperation within OPEC+) was (considered) at our internal meeting, one of the most important topics that we discussed today," Novak said, according to Interfax news agency.

"We are in constant contact and used this opportunity in our meeting to discuss the market situation," Novak said.

It was not immediately clear what, if any, concrete conclusions were reached. Novak said earlier that the oil price would be discussed.

Saudi Arabia and Russia have coordinated supply cuts in recent years to support oil prices.

THE KINGDOM AND THE KREMLIN

Kremlin spokesman Dmitry Peskov said it was difficult to overestimate Russia's coordination with Saudi Arabia and other partners on global oil markets amid the escalating conflict in the Middle East.

He told reporters that the visit of Prince Abdulaziz to Moscow provided an opportunity to look into current affairs.

"Of course, the global oil markets are very sensitive to the events that are currently unfolding around the Palestinian-Israeli conflict, and of course, in this case, our coordination with the Saudis and our other partners ... is difficult to overestimate its importance," Peskov said.

Russia and Saudi Arabia also held a meeting of their inter-governmental commission.

Novak said at the start of the meeting that Russia was ready to boost oil product supplies to Saudi Arabia. Gulf states, which have their own major refineries, usually re-export Russian fuel.

He also said that Russia was ready for cooperation with Saudi Arabia in nuclear energy, geological exploration and food supplies.

SUPPLY CUTS

Putin is scheduled to address the forum later on Wednesday. Iraqi Prime Minister Mohammed Shia Al-Sudani, who is on an official two-day visit to Moscow, and some OPEC representatives are also expected to attend the forum.

Saudi Arabia and Russia have agreed to continue with voluntary oil supply cuts of a combined 1.3 million barrels of oil per day, or more than 1% of global demand, to the end of the year.

© Reuters. FILE PHOTO: Saudi Energy Minister, Prince Abdulaziz bin Salman al-Saud, and Russian Deputy Prime Minister Alexander Novak attend a session of the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia, June 3, 2021. REUTERS/Evgenia Novozhenina/File Photo

Saudi Arabia said on Tuesday it was working with regional and international partners to prevent the escalation of the situation in Gaza and neighbouring areas, and reaffirmed that it supports efforts to stabilise oil markets.

Israel produces very little crude oil, but markets are worried that the conflict could escalate and disrupt Middle East supplies, worsening an expected deficit for the rest of the year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.