Kuwait and UAE welcome Saudi-Russian oil cooperation

Kuwait and the United Arab Emirates on Monday welcomed an agreement by the world’s two biggest oil producers Saudi Arabia and Russia to try jointly to stabilize oil prices.

Kuwait “welcomes the consultations between Saudi Arabia and Russia about oil markets... and backs the outcome of these consultations for the sake of achieving a balance in the markets”, acting oil minister Anas al-Saleh told the official KUNA news agency.

“The consultations come in the framework of cooperation among major OPEC and non-OPEC producers... to regulate and stabilize markets,” said the minister of OPEC’s fifth largest producer. Emirati Energy Minister Suhail al-Mazrouei also hailed the “positive step”.

OPEC-member UAE “is keen on supporting and contributing to any common efforts aimed at achieving balance in the oil market”, he said in remarks cited by WAM state news agency.

A joint Russian-Saudi statement said they “noted the particular importance of constructive dialogue and close cooperation between the largest oil-producing countries with the goal of supporting the stability of the oil market and ensuring a stable level of investment in the long term”.

The comments by Saudi Energy Minister Khaled al-Faleh and his Russian counterpart Alexander Novak came after a meeting at the G20 summit in China. “To this end the ministers agreed to act together or in cooperation with other oil producers,” their statement said, adding they had agreed to set up a “joint monitoring group” to offer recommendations aimed at preventing price fluctuations.

However, there were no details in the announcement about any elusive agreement to freeze oil output, just weeks before Moscow and OPEC meet in Algeria to discuss the crisis. The oil market has been plagued by a stubborn supply glut that saw prices plunge to near 13-year lows below $30 at the start of 2016.