Saudi Arabia, Russia Urge OPEC+ Members for Commitment
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Hashim Sheikh
- . December 8, 2023
- . Update: December 8, 2023 7:08 pm
Saudi Arabia and Russia agree that it is important for OPEC+ members to commit to the group’s agreement that serves the interests of producers and consumers, and supports the growth of the global economy.
Russian President Vladimir Putin’s visit to Saudi Arabia on Wednesday reinforced the OPEC+ members as oil price has been slipping. Oil prices fell to a five-month low after the producers decided to cut supply. There had been disagreement between members about production cuts.
The price for oil is determined partly by the balance between supply and demand, and partly by fears about future shifts in that balance. OPEC+, on November 30, agreed an additional cut of approximately 0.7 million bpd, on top of Saudi Arabia’s extension of its voluntary cuts of 1 million bpd through the end of the first quarter in 2024. Russia joined with 0.3 million bpd in crude export cuts and 0.2 million bpd in product export cuts.
Saudi Arabia – Russia Joint Investments
Saudi Arabia and Russia are keen to continue working to enhance mutual and joint investments, enable the private sector and hold joint investment forums and events, develop the investment-attractive environment, provide the necessary enablers, and solve any challenges in the field.
Both countries agreed to enhance cooperation in oil and gas, such as procurement, supplying and standardizing equipment in the field of oil and gas, research and development services, as well as in petrochemicals. They will evaluate the use of modern technologies in this field between companies in their countries.
Moreover, Saudi Arabia and Russia want to explore peaceful uses of nuclear energy, electricity and renewable energy, including solar, wind, and geothermal energy, developing its projects and technologies.
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Russia Applauds Saudi Green Initiative
Putin commended Saudi Arabia’s Green Initiative and the Middle East Green initiative. He reaffirmed Russia’s support for the Kingdom’s efforts in the field of climate change by implementing the circular carbon economy.
They stressed the importance of adhering to the principles of the Framework Convention on Climate Change and the Paris Agreement, and the necessity of developing and implementing climate agreements by focusing on emissions.
Saudi Arabia and Russia are also working toward maximizing the use of local content in the energy sector projects, stimulate innovation and use of new age technologies, including artificial intelligence in this field.
