Saudi Arabia and Russia pledged to continue cooperation on the OPEC+ production cut agreement, as Saudi foreign minister Prince Faisal bin Farhan said on Wednesday that the group was aiming for a ‘fair’ price for crude oil.
“I would like to assure that we and Russia would like an oil price which is fair to consumers and to producers,” Saudi foreign minister, Prince Faisal bin Farhan, said at a press briefing with Russian counterpart, Sergei Lavrov, in Riyadh, according to S&P Global Platts.
“This is what OPEC+ looks to achieve and there is good coordination in this initiative and we continue in working to support what benefits the global economy.”
Russia and Saudi Arabia, two of the world’s top crude producers, co-chair the OPEC+ alliance, which controls roughly half of global production capacity and has instituted deep oil output cuts as the world continues to grapple with the coronavirus pandemic.
But the countries do not always see eye to eye, with Russia often pushing for looser production quotas, while Saudi Arabia has favored a more cautious, disciplined approach to supply management.
The ministers’ meeting comments follow the most recent OPEC+ decision on March 4 to roll over most quotas for another month, except for a 125,000 b/d rise granted to Russia and a 20,000 b/d increase allowed for Kazakhstan. Saudi Arabia also said it will maintain its voluntary 1 million b/d cut, as well, to continue tightening the market.
“We share a view that it is necessary to develop our cooperation in the global hydrocarbon market, to closely coordinate our actions, including in the OPEC + format. They are yielding results,” Russian foreign minister Sergei Lavrov said.