Russia, the US and Saudi Arabia have agreed to coordinate actions on stabilizing oil markets and minimize the impact of oil price volatility on global economy, the Kremlin said in a statement on Friday.
“Today, Russian President Vladimir Putin had a phone conversation with US President Donald Trump and Saudi Arabia King Salman bin Abdulaziz Al Saud,” the state-run TASS News Agency quoted the Kremlin press service as saying in the statement.
The sides confirmed “determination to coordinate actions to stabilize the situation in the global oil trade and minimize the negative impact of volatile oil price quotations to the global economy”, it said.
According to the statement, the sides discussed the situation on oil markets, including with regard to the emergency OPEC+ ministerial meeting and the upcoming video conference of G20 energy ministers.
The plan on oil production cuts within the OPEC+ framework envisages that Russia and Saudi Arabia will reduce their oil production by 2.5 million barrels per day, from the current 11 million barrels to 8.5 million barrels per day in May-June, according to a draft agreement obtained by TASS.
During a video conference that began on Thursday, OPEC+ nations have been discussing the situation on the oil market and proposed cuts.
The previous OPEC+ agreement expired on March 31.
After that Russia and Saudi Arabia failed to agree on the terms of its extension.
The parties’ withdrawal from the agreement pushed OPEC+ to increase production, which coincided with a sharp decline in oil demand caused by the coronavirus pandemic.
As a result, the oil price plummeted to $22 per barrel which is the sharpest fall in 20 years.
In late March, the partners decided to resume consultations and to invite more oil producing countries to take part in the joint activities to balance the oil market.-IANS News
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