Saudi Arabia remains committed to the OPEC+ agreement with Russia. This was stated on Sunday evening by the First Deputy Prime Minister and Defense Minister of the Kingdom, Crown Prince Mohammed bin Salman Al Saud during a telephone conversation with French President Emmanuel Macron, reports the SPA Saudi news agency.
As noted, the two sides discussed, among other things, the impact of the Ukrainian crisis on energy markets. "In this regard, the crown prince reiterated the kingdom's interest in the stability and balance of oil markets, as well as the country's commitment to the OPEC+ agreement," the report said.
After Russia launched a special operation in Ukraine, oil prices approached the $100 a barrel mark, and sanctions imposed by the West against Moscow have raised questions about whether OPEC countries, particularly Saudi Arabia, are willing to increase production to lower prices and speed up supply to a tight market, as called for by the United States and key crude oil consumers. In addition, disconnecting a number of Russian banks from the SWIFT interbank system could also jeopardize OPEC's relationship with Russia.
The next meeting of the OPEC+ alliance to decide on production levels in April is scheduled for March 2. Until recently, OPEC countries said they planned to stick to their planned modest production increase on a monthly basis. Traders, however, believe that demand for Russian oil is drying up because of sanctions, and refiners are looking for alternatives.
In February, the countries of the OPEC+ agreement agreed to increase oil production in March by another 400 thousand bpd, continuing to adhere to the plan adopted in July 2021 to restore oil production at a rate of no more than 400 thousand bpd per month. At that time, the common position of Russia and Saudi Arabia was that it was no longer possible to increase oil production under the current conditions due to shrinking demand and a potential drop in prices.
OPEC agreed with Russia and nine other countries to reduce production from 2017 in order to support the oil market. Russia is one of the world's top three oil producers with the production of 10.08 million bpd in January.
GSV "Russia - Islamic World"
Photo: official website of the President of the Russian Federation
Based on materials from TASS