Oil rises 2 percent as potential OPEC deal trumps U.S. exports

Katrina Barker
October 7, 2017

"More than half of OPEC ministers will arrive, ministers from Algeria, Venezuela, Saudi Arabia, Qatar and some other countries have already confirmed that they will participate", Novak said, as quoted by TASS.

The deals included preliminary agreements on the purchase of S-400 air-defense systems, Kornet antitank guided-missile systems, and multiple rocket launchers, according the state-owned Saudi Arabian Military Industries.

Russian state media hailed King Salman's visit as evidence that Russia's backing for Mr Al Assad had made Mr Putin "master of the Middle East".

A thaw between Moscow and Riyadh helped reach November's deal in which Opec and 10 other oil-producing countries, including Russian Federation, agreed to cut their production in a bid to combat a supply glut and shore up crude prices.

King Salman's visit to Russian Federation has been widely interpreted as a sign of Russia's growing influence in the Middle East. Putin paid a state visit to Saudi Arabia in 2007. "But as I think of fundamentals I am more optimistic than I have been in the last two or three years, demand is healthy around the world in developed and developing countries".

Saudi King Salman is now in Russian Federation as part of a state visit, the first to Moscow by a reigning Saudi monarch.

Russian Federation and Saudi Arabia will continue to work on stabilising world oil markets, King Salman told Putin on Thursday.

Riyadh supports US -backed rebels fighting against Syrian President Bashar al-Assad's government, while Russian troops and Iranian militias have backed Assad in the country's six-year civil war.

Novak said the two countries' business circles maintain intensive dialogue, and he pointed out that the Saudi delegation to Moscow included 85 chief executives of major Saudi companies.

Moreover, he underlined the importance of maintaining the territorial integrity of Iraq, in a clear allusion to Iraqi Kurdistan, which on September 25 held an independence referendum.

"The two have been coordinating their efforts to cap oil outputs and therefore boost the price of energy, but of course there is the changing political structure of the Middle East too", he said.

Saudi Arabia and Russian Federation have a joint interest in diversifying their economies away from oil as the price is still trading well below historic highs.

Despite this, other factors weighed on oil prices, including the return to production of Libya's Sharara oilfield after an armed brigade forced a two-day shutdown.

Other reports by AllAboutTopnews

Discuss This Article