Russia and Saudi Arabia signed agreement on oil market

Russia and Saudi Arabia signed an agreement aimed at stabilizing oil prices. It was announced on the sidelines of the G20 summit in China by the Russian Energy Minister Aleksandr Novak and the Saudi Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih.

Minister Novak showed that Moscow and Riyadh are sharing a strategic partnership in the energy sector, stressing that the deep mutual trust between the two countries permit to offer a joint solution to global challenges. "We are ushering in a new phase of our cooperation today. Our energy cooperation is moving towards a deeper and closer interaction", said Novak, adding that this was possible" thanks to relationships with our Arab friends. " The Russian Energy Minister also highlighted how this is a moment "historic", which states the rapprochement between OPEC countries and oil-producing countries that are not part of OPEC.

U.S. crude oil for October delivery on the New York Mercantile Exchange was up $1.11 at $45.55 a barrel, after reaching a high of $46.53 a barrel earlier in the session. Although Russia and Saudi Arabia have agreed to establish a task force to review the fundamentals of the oil market and to recommend actions and measures that can ensure stability,  "a freeze is one of the preferred options but it is not needed for the moment," Saudi Minister of Energy said.

The agreement comes after the deputy Saudi Crown Prince Mohammed Bin Salman, meeting Russian President Putin, spoke about benefits for the global market of crude oil from possible cooperation between the two countries. The first meeting of the working group will be held in October in Algeria, while a second meeting is scheduled in November in Vienna, Austria. An informal meeting between OPEC countries and non-OPEC , such as Russia, will have to be held on the sidelines of an international forum for energy on September 26-28 in Algiers.

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