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Post: Putin had a telephone conversation with the Crown Prince of Saudi Arabia.


Russian President Vladimir Putin. archive photo

Putin discusses cooperation within the framework of OPEC + with the Crown Prince of Saudi Arabia

MOSCOW, January 30 – RIA Novosti. Russian President Vladimir Putin had a telephone conversation with Crown Prince Mohammed bin Salman al Saud of Saudi Arabia. area Kremlin.

The head of state and his interlocutor discussed the interaction between Moscow and Riyadh within the framework of OPEC + to ensure the stability of the global oil market.

“The issues of further development of bilateral cooperation in the political, commercial, economic and energy fields were discussed,” the publication says.

As Deputy Prime Minister Alexander Novak noted at the end of December, OPEC+’s actions have stabilized the situation in the global oil market, but the alliance continues to hold its pulse.

In May 2020, OPEC+ reduced production by 9.7 million barrels per day due to the drop in oil demand caused by the coronavirus pandemic. Since August last year, the alliance has entered the final stages of coming out of these cuts, but in November it again reduced production by two million barrels a day from the August maximum.

This decision was explained by the participants in the transaction with the uncertainty of the forecasts for the world economy and the expectations of a decrease in oil demand. According to Haytham al-Gais, the organization’s general secretary, they decided to cut production again, as an oversupply was anticipated in the market earlier this year.

In this context, as of December 5, the European Union imposed price restrictions on overseas crude oil supply from Russia at $60 per barrel, and on petroleum products from February 5th. This limit will come into effect in parallel with the EU embargo on the purchase of Russian oil transported by tankers.

In response, Russia has banned the supply of oil to foreigners from February 1 of this year if the contracts directly or indirectly provide for the use of the marginal price fixing mechanism.

Source: Ria

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