Saudi Arabia, Russia ready to take further action on oil market if necessary
Saudi Arabia and Russia are prepared to take further measures jointly with OPEC+ and other producers on oil market if deemed necessary, Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman said in a joint statement with his Russian counterpart Alexander Novak after a phone call between the two on Thursday.
“Our two countries have worked diligently with the other OPEC+ countries and other producers to achieve a historic agreement to stabilize the oil market,” the statement read according to Saudi state news agency SPA.
“Both our nations are strongly committed to implement the agreed target cuts over the next two years and will continue to closely monitor the oil market and are prepared to take further measures jointly with OPEC+ and other producers if these are deemed necessary.”
“We are also confident that our partners in OPEC+ and other producers will live up to their commitments.”
OPEC+, the group composed of OPEC, Russia and other oil producing nations, had successfully concluded a deal on Sunday to cut oil output by 9.7 million barrels per day (bpd) in May and June, which amounts to 10 percent of global supply.
Expected deals with other producers and buyers will bring the total cut to 19.5 million bpd, Saudi Arabia’s energy minister said Monday.
Measures to curb the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, straining budgets of oil producers and hammering the US shale industry, which is more vulnerable to low prices due to its higher costs.
Global oil demand is estimated to have fallen by a third as more than 3 billion people are locked down in their homes due to the coronavirus outbreak.