HANGZHOU: The world's two largest oil producers, Russia and Saudi Arabia, on Monday agreed to act together to stabilize global oil output.
Energy ministers Alexander Novak and Minister Khalid Al-Falih met Monday on the sidelines of the Group of 20 nations' summit in China. A joint statement released by Russia said both ministers "recognized the need to restrain an excessive volatility of the oil market" and agreed to act together "in order to stabilize the oil market."
“Of course, strategic works with Russia will be important given that they are one of the two largest producers of oil along with the Kingdom. There is no doubt that Saudi Arabia to see OPEC and non-OPEC countries to follow our lead in joining this strategic working group,” Saudi Arabia’s Energy Minister Khalid Al-Falih.
Novak and Al-Falih said they would chair the first Russia-Saudi task force on oil and gas in October.
سيتم العمل المشترك بين وزارتي الطاقة في الدولتين على تبادل التقنيات وتطوير صناعة البترول في البلدين pic.twitter.com/cym5PRu3UD— خالد الفالح (@Khalid_AlFalih) September 5, 2016
Translation: "The Ministries of Energy in both countries will work collectively to exchange technologies and develop the petroleum industry in both countries" — Khalid Al-Falih
Russia, which is not a member of the oil producing nations' group OPEC, this year supported calls to freeze production, but the efforts fell through after OPEC member Iran opposed the plan.
“Both Russia and Saudi Arabia, as the two largest oil producers in the world, have the heaviest burdens to see the oil markets stabilize,” Novak said.
Kuwait and the United Arab Emirates welcomed the agreement by Saudi Arabia and Russia to try jointly to stabilise 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.