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Russia, Saudis sign oil production boost

Monitoring Desk

JEDDAH: Russia and Saudi Arabia said on Friday they believe a deal is possible to gradually boost oil output from as soon as July as world oil prices have recently hit highs last seen in 2014.

Meanwhile, President Vladimir Putin said on Friday that Moscow would be satisfied with the price of crude oil dropping to $60 per barrel, from its recent level of around $80.

Russia and Saudi Arabia are the key movers behind a pact between OPEC and other producers that has limited production since 2017 but which experts fear may soon lead to a spike in prices.

Saudi oil minister Khaled al-Faleh said at an economic conference in Russia that a gradual output increase could happen in the second half of the year to prevent any supply shocks, according to the RIA Novosti agency.

His Russian counterpart Alexander Novak said they had discussed whether they need to ease production limits.

“If we come to a common opinion that it is necessary” to increase supply it “should probably take place from the third quarter,” Novak said, according to RIA Novosti.

 

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