Saudi Arabia and Russia sign an agreement to cooperate on oil and Brent jumps to $ 49

2016/9/5 15:38

[Oan- follow-up]

And Saudi Arabia and Russia signed on Monday an agreement for cooperation in the oil market, including curbing production which caused the price rise strongly in the hope that the biggest hike was slapped in the world working together to address the global supply glut of crude.

The agreement was signed by ministers of Saudi Arabia and the Russian energy in China on the sidelines of the Group of Twenty summit after a meeting between Russian President Vladimir Putin and Saudi Crown Prince, Crown Prince Mohammed bin Salman.

He said Russian Energy Minister Alexander Novak said the two countries are heading towards a strategic partnership in the field of energy, although the high level of trust will allow them to face global challenges.

Will be held Organization of Petroleum Exporting Countries [OPEC] informal talks in Algeria later this month is expected to formally meet in Vienna in November.

He called a number of OPEC producers to install production to curb oversupply of crude also hinted Arabia the largest producer in the Organization to its willingness to cooperate at a time when it is facing pressure on its budget and seek to put part of Aramco's state-owned oil producer in the stock market.

Any agreement between OPEC and Russia is a member of the organization will be the first of its kind in the 15 years since that Moscow agreed to cut production with the organization at the beginning of the millennium, but Russia has never committed to its promises.

In April, Russia was ready to install the production with OPEC, but the talks collapsed after Riyadh said it would not accept the agreement unless attended by Iran's third-largest crude producer in OPEC.
Iran says it needs to regain market share lost during the years of Western sanctions lifted in January after the nuclear deal.

Putin said last week that a new agreement on oil production may involve some concessions with regard to the Iranian production.

Oil prices have collapsed, falling to $ 27 a barrel earlier this year, compared with $ 115 in mid-2014 but recovered thereafter to around $ 50 a barrel.

Jumped International benchmark Brent crude on Monday more than 4.7 percent to above $ 49 a barrel before they give up some of its gains.