Oil rises 2 pct as potential OPEC deal trumps U.S. exports

Saul Bowman
October 6, 2017

While the USA has remained Saudi Arabia's top weapons supplier and its most critical Western ally, Thursday's deals highlighted Riyadh's intention to expand ties with Russian Federation.

The comments are the strongest signal yet that the Kremlin is willing to redouble efforts to lift global energy prices, coming as Putin prepares to welcome King Salman Bin Abdulaziz of Saudi Arabia to Russian Federation for the first time this week.

In May 2017, the deal was extended by nine months to the end of March 2018.

Saudi Arabia wants to establish an worldwide center to fight terrorism under the aegis of the United Nations, Salman said.

Together they produce about a quarter of the world's oil and previous year clinched a deal created to eliminate a global supply glut, in part triggered by the rapid rise in American production.

Saudi Arabia's Public Investment Fund (PIF) in cooperation with the Russian Direct Investment Fund (RDIF) is considering joint work on 25 investment projects in various areas, according to Russian Energy Minister Aleksandr Novak.

King Salman, stuck on his golden escalator.


"This is the first visit by a Saudi Arabian monarch in the history of our relations and that in itself is a landmark event", Putin said as he welcomed King Salman to Moscow in an ornate gilded Kremlin hall.

Putin was reacting to comments by Russian Sports Minister Pavel Kolobkov who said the 45,000-seat World Cup stadium in Samara, which has been plagued with delays over the past year, was the biggest issue. Saudi Arabia, meanwhile, is leading the worldwide coalition launching daily airstrikes against Houthi-held settlements in Yemen.

The two countries found themselves on opposite sides following the USSR's invasion of Afghanistan and Moscow's decade-long occupation of that country.

Last week, U.S. oil exports rose to 1.98 million barrels per day, and oil yield continued to grow for the fourth week in a row, Kitanaka said.

"The stakes are as high for Moscow as for Riyadh".

"Saudi Arabia has started investing in the Russian economy, construction, and other spheres", he highlighted.

Russian Federation is also hoping that today's round of meetings will confirm closer cooperation between the two giant oil-producing nations, leading to a longer-term agreement to constrain production and prevent a further fall in oil price. New York, London and Hong Kong are the main contenders.

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