Vladimir Putin and Mohammed bin Salman have called on all Opec+ group members to adhere to the recently announced production cuts.
Despite the group’s commitment last week to cut oil supplies by 900,000 barrels per day, on top of Saudi Arabia’s ongoing reduction of a million barrels per day, oil prices have continued to fall.
In a joint statement, the leaders of Russia and Saudi Arabia remarked:
Regarding energy, both parties praised their effective collaboration and the successful role of OPEC+ countries in stabilizing the global oil market.
They emphasized the need for ongoing cooperation and urged all countries involved in the Opec+ agreement to participate in a manner that benefits both producers and consumers and fosters global economic growth.
Oil prices rebound from five-month lows
Oil prices have rebounded following a five-day losing streak that brought them to their lowest point since June, despite indications that global supply is outpacing demand. This increase comes even as Saudi Arabia plans to continue reducing its oil production into 2024.
The global benchmark Brent crude experienced a 1.3% increase, surpassing $75 per barrel after previously dropping by 11% in its longest period of decline since February. Similarly, West Texas Intermediate (WTI) also saw a 1.3% rise, exceeding $70 per barrel.
Recent official US data revealed a further accumulation in crude oil inventories, while production levels remained close to record highs.
This downturn in crude oil prices, which contributed to the lowest overall commodity index since 2021, occurred despite a recent agreement by the OPEC cartel and its allies to implement deeper cuts in oil production.
