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Russian Energy Minister

Russia talks oil stability with Saudi Arabia

MOSCOW, August 16, 2016 – Russian Energy Minister Alexander Novak has confirmed ongoing communication with Saudi Arabia and other oil-producing nations geared towards stabilising the oil market in an interview on Monday.

“With regard to the co-operation with Saudi Arabia, the dialogue between our two countries is developing in a tangible way, whether in the framework of a multi-party structure or on a bilateral level,” Novak said. “We are ready to achieve the widest possible level of co-ordination […] and put in place joint measures to achieve oil market stability, with the condition that these measures will not be for a limited period of time.”

 

Although collaboration was suggested, he maintained that he did not believe market stability would be possible until 2017 at the earliest.

The official’s comments mirror the Saudi Arabian energy minister’s pronouncement last week that the country would work with OPEC and non-OPEC members to bring stability to oil markets during a meeting on the sidelines of the International Energy Forum in Algeria on September 26-28.

Similar talks to initiate production freeze by oil-producing nations failed after Iran refused to slow production and Saudi Arabia backed out.

These remarks have given a push to oil prices that had already risen around 10% this month. Brent crude hit a high of USD 48.74 this morning, its highest since July 7.

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