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OPEC+ deal extension to ensure oil market balance - Saudi Minister

Saudi Energy Minister Khalid Al-Falih noted this agreement confirms that the Saudi-Russian partnership paves the wat to supporting the growth of the world economy

TASS, June 29. Extending the OPEC+ oil production capping deal will balance out the situation on the energy market because it will lead to lower global carbon reserves, Saudi Energy Minister Khalid Al-Falih wrote on his official Twitter page on Saturday.

"At the bilateral meeting on the sidelines of the [G20] summit [in Osaka], Russian President Vladimir Putin and His Highness [Saudi] Crown Prince [Mohammed Bin Salman Al Saud] agreed to extend the current OPEC+ states oil production capping deal in July 2019. This will result in reduced global reserves and, therefore, will balance the markets and restore the level of investments to ensure future energy supplies," he wrote.

As the Minister pointed out, "this agreement confirms that the Saudi-Russian partnership paves the wat to ensuring interests of producers and consumers and supporting the growth of the world economy."

Vladimir Putin earlier told the G20 summit press conference that Russia and Saudi Arabia had agreed to support the extension of the OPEC+ oil production capping deal for the period of 6 or 9 months.

Russian Energy Minister Alexander Novak told reporters on Saturday that Russia’s and Saudi Arabia’s willingness to extend the reduced production in the framework of OPEC+ is a key factor of stability on the oil market amid global unpredictability.

The OPEC+ countries have been discussing the oil production policy since April this year. However, unpredictability and geopolitical factors saw the failure to reach an oil production capping agreement. The deal on reduction of oil production by 1.2 mln barrels daily, with Russia’s share of 228,000 barrels a day, was concluded in December 2018 and expires on June 30.