Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman walk during a meeting in Riyadh, Saudi Arabia December 6, 2023. Sputnik/Aleksey Nikolskyi/Kremlin via REUTERS/ File Photo
In an unexpected diplomatic move, the world’s leading oil exporters, Saudi Arabia and Russia, have jointly called for the adherence of all OPEC+ members to an agreement on output cuts, emphasizing the imperative for global economic well-being. This collaborative stance emerged following a swiftly arranged meeting between Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman in Riyadh.
The recent OPEC+ discussions concluded with an agreement for new voluntary cuts, amounting to approximately 2.2 million barrels per day (bpd). This initiative, led by Saudi Arabia and Russia, builds upon their existing voluntary cuts of 1.3 million bpd. In a statement released by the Kremlin, both nations commended the successful efforts of OPEC+ in stabilizing global oil markets and stressed the need for all participating countries to adhere to the agreement. The message, explicitly conveyed in Russian, underlined the importance of serving the interests of both producers and consumers while supporting global economic growth.
The joint statement, notably employing the term “join” in the Russian version and “adhere” in the English translation, seemed directed at OPEC+ members that either refrained from cutting or did not implement sufficient cuts. The conspicuous absence from the cuts is Iran, currently under various U.S. sanctions since 1979. Despite the sanctions, Iran aims to boost production and achieve an output of 3.6 million bpd by March 20 next year.
Upon his return to Moscow, Putin engaged in talks with Iranian President Ebrahim Raisi, accompanied by Deputy Prime Minister Alexander Novak and Defence Minister Sergei Shoigu. The purpose of Putin’s enigmatic trip to Riyadh and Abu Dhabi, escorted by Russian fighter jets, remains unclear.
During Putin’s meeting with Crown Prince Mohammed bin Salman, discussions extended beyond oil matters, encompassing conflicts in Gaza, Ukraine, and Yemen, the Iranian nuclear program, and the deepening defense cooperation between Russia and Saudi Arabia. Putin expressed gratitude for the humanitarian and political efforts undertaken by the Crown Prince in addressing the crisis in Ukraine.
The OPEC+ discord, evident in the delayed meeting and subsequent oil price decline, raises questions about the internal dynamics of the producer group. Both Putin and Crown Prince Mohammed bin Salman, controlling a significant portion of global oil production, share a common interest in maintaining high oil prices. However, the challenge lies in determining the equitable distribution of the burden to sustain these prices, along with implementing effective verification mechanisms.
The meeting between Putin and the Crown Prince featured warm exchanges, with Putin expressing anticipation for the next meeting in Moscow. Despite unforeseen changes in plans, both leaders affirmed their commitment to furthering friendly relations.
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