A new deal is being conducted between Saudi Arabia and Russia that will change the course of energy in both countries. According to recent news, Saudi Arabia has announced that OPEC+ will continue on its work till the end of the year. There was talks between both government regarding the oil industry, but finally a deal was made.
Details of the deal were not yet released due to the severity of the issue. However, both countries announced the importance of having this deal at the moment. Common concerns include the idea of slow moving oil industries and high raising oil prices. According both governments and ministers decided to move forward with the deal to help save the industry before and further complications take place.
This was commented on by both the Saudi Energy Minister Khalid Al-Falih and the Russian Energy Minister by saying, “There is almost full alignment between the two ministries. We see a consensus emerging that we need to continue the supply management regime that we have established with OPEC+, and in particular with Russia. The biggest drivers are now sanctions, tariff wars. The situation in the market is far from being a positive one and demand growth may slow to below 1 million barrels a day, so the OPEC+ deal is a very great instrument for dealing with this uncertainty. We have certain differences in opinion regarding the fair price, $60-65 a barrel suits us just fine because Russia’s budget is based on $40 crude.”