Saudi Arabia wants to cooperate to support oil

Saudi Arabia wants to cooperate with other oil producers to support the oil market

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Saudi Arabia was not the source of a proposal to cut oil production that Russia was studying, Al Arabiya channel reported on Sunday, quoting a Saudi source.

But the kingdom, the world's biggest oil exporter, wanted to cooperate with other producers to support the oil market, the source said.

Russian Energy Minister Alexander Novak said on Thursday that OPEC had proposed output cuts of up to 5 percent to help reduce a glut of crude and prop up sinking prices, in what would be the first such deal globally in over a decade.

The Saudi source's comments were in line with remarks made by a senior Gulf OPEC delegate to Reuters on Thursday.

Saudi Arabia has long said it is willing to act to stabilise prices but that the other countries, particularly higher-cost producers, must also reduce their output.

The possibility of supply restraint by producers boosted oil prices to almost $36 a barrel last week from a 12-year low close
of $27.

But there is widespread scepticism that a deal will happen, especially since Iran is keen to boost its market share now that sanctions on it have been lifted.

(With Reuters)