Saudi Minister of Energy, Industry and Mineral Resources Khaled Al-Falih held a telephone conversation with Russian Energy Minister Alexander Novak during which the two ministers discussed the latest developments in the international oil market and the declaration issued by the ministerial meeting of OPEC member countries in Vienna on June 23, To adjust the overall average commitment to a production cut from 147% in May 2018 to 100% as of July 1, equivalent to an increase of about 1 million bpd.
As Chairman of the Joint Ministerial Committee for Oil Production Control with his Russian counterpart as Co-Chair, Al-Faleh discussed the need to modify existing control procedures to reflect the agreed target of adjusting the average gross commitment to 100%.
The Ministers agreed that JCOMM would be mandated to formulate and propose appropriate actions and submit them to the Joint Ministerial Committee for Oil Production Control. They also agreed to continue close coordination and consultation with the other participating producer partners in the Declaration of Cooperation to the benefit of producers, consumers and the global economy Quoting "alarabiya.net" .
High-level Russian involvement in the future investment initiative
The Russian Fund for Direct Investment in the Future Investment Initiative in Saudi Arabia is part of a large Russian delegation.
Kiril Dimitryev, head of Russia's direct investment fund, has unveiled new investments with Saudi Arabia worth up to $ 1 billion.
This comes after the relations between Riyadh and Moscow developed over the past years produced a new framework known as "opec plus".
The convergence between the two sides has become familiar after energy ministers in the world's two largest oil exporters sent a unified message to the markets. But the strategic relationship that hides behind it may be the biggest shift oil markets have known since OPEC emerged.
Until a few years ago, there were those who predicted the death of Opec because of disagreements among its members and increased supplies from outside. But a careful track in developing relations between Riyadh and Moscow produced a new framework known as "opec plus." This framework controls about 55% and 50% of the world's oil supply, and nearly 90% of proven oil reserves.
In this new context, Russia has abandoned a historical Muslim in its oil policy. It has rejected any restrictions on its production. But the strategic relationship with Saudi Arabia has generated mutual trust, which has helped drive the oil market out of price war and oversupply.
The most important turning point was the visit of Prince Mohammed bin Salman to Russia in June 2015, when he was Crown Prince, to begin a new path crowned the historic visit of King Salman to Moscow in October 2017, and then came Crown Prince Mohammed bin Salman last June, to take relations Economic development towards a new horizon.
The economic relations between the two countries do not stop at the oil markets, but include giant investment agreements in several sectors, most notably an understanding to create a joint $ 1 billion energy investment platform and inject $ 1 billion into a joint investment platform in technology. In addition to a Saudi investment of about $ 100 million in transport projects in Russia. And an executive program for cooperation in peaceful nuclear energy. Aramco is also considering the Yamal-2 giant natural gas project in Russia.