Vladimir Putin indicated that the reduction in oil supplies by Saudi Arabia and Russia is likely to be prolonged, as the Opec+ group seeks to stabilize prices.
The Russian leader mentioned that the world’s top two oil producers, along with their allies, are leaning towards extending their collaboration.
When questioned about the extension of the supply cut agreement at the Russian Energy Week conference in Moscow, he responded, “It seems probable. We’ll discuss this with our partners; our decisions are made collaboratively. As of now, our cooperation appears to be ongoing.”
These statements mark Putin’s most pronounced hint so far that the Opec+ supply cuts may last well into 2024 and possibly longer.
In the previous month, Saudi Arabia, the head of the Organisation for Petroleum Exporting Nations cartel, unexpectedly prolonged its daily supply cut of 1 million barrels, which started in July, until the year’s end.
Similarly, Russia, part of the expanded Opec+ alliance and the second biggest oil exporter globally, chose to prolong its daily export reduction of 300,000 barrels through the year’s end.
Oil prices surged by one-third since mid-June, reaching roughly $97 per barrel. However, by late September, they had declined by 12%, until Middle East tensions caused them to rise again by approximately $3 per barrel.
Despite Putin’s statements at the Russian Energy Week event in Moscow, Brent crude, the global standard, has decreased by 1% today, falling below $87 per barrel.
