Russia and Saudi Arabia rally OPEC+ nations for unified oil cuts

Following Russian President Vladimir Putin's sudden visit to Riyadh to meet Saudi Crown Prince Mohammed bin Salman, the Kremlin issued a joint Russian-Saudi statement concluding their discussions.

Saudi Arabia and Russia extended their previous voluntary cuts of 1.3 million barrels per day (bpd) to fresh voluntary cuts of roughly 2.2 million barrels per day (bpd) last week, with the support of other partners, Reuters reported.

"In the field of energy, the two sides commended the close cooperation between them and the successful efforts of the OPEC+ countries in enhancing the stability of global oil markets," the Kremlin said in a statement.

"They stressed the importance of continuing this cooperation and the need for all participating countries to join the OPEC+ agreement in a way that serves the interests of producers and consumers and supports the growth of the global economy," reported Reuters, citing the statement.

Saudi state news agency SPA said that the crown prince, known as MbS, and Putin had stressed in their meeting the need for OPEC+ members to commit to the group's agreement, according to the report.

According to the report, the oil market sources stated that the explicit public statement from the Kremlin and the kingdom about "joining" cuts seemed like a veiled reference to particular oil-producing nations.

Putin will meet with Iranian President Ebrahim Raisi in Moscow on Thursday.

According to the report, the details of Putin's visit to Riyadh and Abu Dhabi, where he was escorted by four Russian fighter jets, remain unclear, and it is unclear what specific issue was so important for Putin to make such an uncommon overseas trip. 

The Kremlin stated that Putin and MbS also spoke about the conflicts in Gaza, Ukraine, and Yemen, as well as strengthening defence cooperation.