President Vladimir Putin had a telephone conversation with the Crown Prince of Saudi Arabia, Mohammed Ibn Salman Al Saud.
As noted in the Kremlin, the parties discussed issues related to the negotiations within OPEC +, in particular, the reduction in oil production.
Vladimir Putin and Muhammad ibn Salman Al Saud agreed to continue contacts on this topic.
Earlier, the Russian leader held talks with the US President Donald Trump. During the conversation, the Heads of state discussed the situation in the oil market, as well as measures to combat coronavirus. The conversation was initiated by Washington
OPEC Transaction +
Lately the OPEC + participants adopted a declaration of cooperation to stabilize the oil market with the proviso that Mexico will join the agreement. The new agreement provides for the reduction in the extraction of raw materials in three stages.
Mexico City proposed to phase out production by 400, 320 and 240 thousand barrels per day, respectively, but the country’s authorities announced their readiness to reduce only 100 thousand barrels.
However, then President Andres Manuel Lopez Obrador said that he had agreed with the United States on the reduction. The head of state explained that Mexico City will reduce production by 100 thousand barrels, and the American side, in turn, will further reduce production by 250 thousand barrels. Trump subsequently reaffirmed this agreement. The US President added that Mexico would later refund this difference to Washington.
Oil quotes collapsed sharply in early March, as OPEC + participants were then unable to agree on an extension of the transaction or conditions for a decrease in production. Since April 1, restrictions have been lifted from all countries in the alliance.
However, in recent days, commodity prices began to rise amid reports of the possibility of a new deal.