Saudi Arabia-Russia oil cooperation aims at balancing oil market — OPEC

The Organization of Petroleum Exporting Countries, OPEC says it does not have a price target and is seeking to have a balanced oil market to meet the interests of both consumers and producers.

The Organization perhaps refers to current Russia-Saudi oil cooperation that supports the OPEC+ alliance, which will do “whatever necessary” to support the market, Saudi Energy Minister Prince Abdulaziz bin Salman told a conference on Wednesday.

Saudi Arabia and Russia, the world’s biggest oil exporters, deepened oil supply cuts on Monday in an effort to send prices higher.

Yet the move only briefly lifted the market as benchmark Brent futures on Wednesday were down more than 1 per cent at $75.30 per barrel, lower than the $80-$100 per barrel than most OPEC nations need to balance their budgets.

The United States, the biggest oil producer outside OPEC+, has repeatedly called on the group to boost production to help the global economy and has criticised Saudi cooperation with Russia after Moscow’s invasion of Ukraine.

But Riyadh has repeatedly rebuffed U.S. calls and Prince Abdulaziz said on Wednesday that new joint oil output cuts agreed by Russia and Saudi Arabia this week have again proven sceptics wrong.

“It is quite telling seeing us on Monday coming out with not only our (oil cut) extension, but also with validation from the Russian side,” he told a meeting of oil industry CEOs with ministers from OPEC and allies, known as the OPEC International Seminar.

The OPEC has withheld media access to reporters from Reuters, Bloomberg and the Wall Street Journal to cover the event, which was partly broadcast online.

After the end of the broadcast, Prince Abdulaziz told the seminar that OPEC+ would do “whatever necessary” to support the market, according to a source who attended the meeting.

“This (the latest addition output cuts) is enough to assess the market and look at the market balance,” Mazrouei told reporters.

He said the UAE would not be contributing to fresh cuts as it was already producing well below its capacity.

“There’s a bigger thing I’m seeing a lack of investments in many countries. We will have to invite maybe newcomers to come and join the group. The more countries we have the easier the job… to ensure that the world has enough oil in the future,” Mazrouei said.

“Imagine if we had 60 per cent of the producers or 80 per cent of the producers. We will definitely do a better job.”