Saudi Arabia and Russia discussed actions to stabilize the global oil market — including an output freeze — at a meeting in China.
Cooperation among all producers is needed to shore up the market, Saudi Energy Minister Khalid Al-Falih told reporters Monday after meeting his Russian counterpart Alexander Novak at the G20 summit. Their agreement to collaborate demonstrates the countries’ “excellent” relationship, he said.
Oil rose Monday after Saudi Deputy Crown Prince Mohammed bin Salman and Russian President Vladimir Putin pledged to work together to stabilize prices. Putin also said last week he’d like OPEC and Russia to agree on an output freeze, boosting speculation that members of the Organization of Petroleum Exporting Countries and other major producers might strike such an accord at talks this month in Algiers.
A similar proposal was derailed in April over Saudi Arabia’s insistence that Iran participate. Yet the effect of the prolonged slump in crude prices — stuck at half the levels seen two years ago — is giving oil-market rivals cause to cooperate.