Russia, Saudi Arabia reach consensus on November oil deal

RIYADH, Oct 24 (PRIME) -- Russia and Saudi Arabia have reached a consensus about a possible agreement between OPEC and non-OPEC members aimed at stabilization of the oil market, which is planned to be signed in November, Saudi Arabia’s Energy Minister Khalid al-Falih said at a news conference on October 23.

“We have come to a consensus with Russia regarding what deal we can reach at a meeting in November,” the minister said after a meeting with Russian Energy Minister Alexander Novak.

Saudi Arabia expects that oil producing countries will manage to reach an agreement at an OPEC meeting in late November, he said.

The U.S. will not participate in any agreements connected with oil production, he added.

In September, OPEC agreed to limit daily oil output at 32.5–33.0 million barrels, but production ceilings for each country are yet to be defined. The final agreement on the issue is to be reached on November 30.

Novak said he was sure that oil-producing countries would be satisfied with prepared measures on balancing the oil market.

“We are holding consultations with my colleagues to work out an optimized mechanism for solving the issues of stabilization; each country is in its own situation. I’m sure that the decisions that are being worked out will satisfy all countries and all countries will be satisfied by the decisions on balancing the market,” he said.

Oil production freeze is an issue of the short-term period, while strategic cooperation for global energy stability and energy security is important, Novak also said.

OPEC President, Qatari Energy and Industry Minister Mohammed Saleh Abdulla Al Sada has stressed the need to strengthen interaction between oil producing countries.

“In the future we will need enhanced interaction to enhance mutual understanding between OPEC and non-OPEC oil producing states, we need to intensify the contacts,” he said.

Venezuelan President Nicolas Maduro said on October 22 that OPEC and non-OPEC members are close to signing a final agreement on the oil price.

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