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    Putin and Crown Saudi Arabia in OPEC Oil Deal Disquss

    Friday, June 9, 2023, June 09, 2023 EDT Last Updated 2023-06-09T12:33:25Z

    Russian President Vladimir Putin calls the heir to the throne of Saudi Arabia, Crown  Prince Mohammed bin Salman (MBS). It happened the day after US Secretary of State Antony Blinken met with MBS. 

    MOSCOW, THURSDAY - Russian President Vladimir Putin has called Saudi Crown Prince  Mohammed bin Salman. The call came during a visit by US Secretary of State Antony Blinken to Saudi Arabia.Blinken and Putin talked about oil. 

    The transcript of Putin's conversation with Mohammad bin Salman was released by the Kremlin on Wednesday (July 6, 2023) at night Moscow time, or on Thursday (August 6, 2023) at dawn WIB. The Saudi news agency also released a transcript of the conversation. 

    Russian President Vladimir Putin shakes hands with Saudi Crown Prince Mohammad bin Salman in a video still from the G-20 summit in Buenos Aires, Argentina, Friday, November 30, 2018. 

    The second cooperation between the countries of the Organization of the Petroleum Exporting Countries (OPEC) has become a topic of discussion between the two leaders. Although Russia is not  a member, it continues to coordinate with OPEC.Therefore, the organization is  better known today as OPEC+. 

    “The cooperation between the two countries within OPEC+ allows for quick and effective action to maintain the balance between oil supply and demand. "The parties recognize the importance of this agreement reached during the ministerial meeting  in Riyadh," the Kremlin statement said. 

    Putin and MBS also discussed economic cooperation between Saudi Arabia and Russia, as well as joint investments and projects in the fields of energy and logistics.Some of the topics covered by Putin MBS were similar to Blinken MBS. 

    Blinken is visiting Saudi Arabia from Tuesday to Thursday this week and is meeting with various parties including MBS. Oil prices are also among the issues discussed with MBS during their Tuesday night meeting  in Jeddah. 

    Earlier, Saudi Energy Minister  Abdulaziz bin Salman announced that Riyadh would continue to cut oil production. From July 2023, Riyadh will reduce its oil production by one million barrels a day.Brother MBS announcement sent oil prices higher. 

    Abdulaziz also reminded Russia to be more transparent about  oil production. Transparency will help the market believe that Saudi Arabia and Russia, as the world's largest  oil suppliers, are actually delivering on their promises. 

    “They (Russia) decided some time ago not to disclose this information (the volume of oil production). Now I'm convinced they realize that this decision puts their production numbers in question," he told Al Arabiya.

    Several analysts suspect  the market is just an excuse  Riyadh is using to question Moscow's production. Over the past year and a half, OPEC+ has repeatedly cut oil production, citing the need to sustain prices. The most recent deal was completed in April 2023. However, data on Russian mining raises questions.

    It is believed that Moscow is  not actually restricting production. Russia did this because it was more willing to accept lower prices than Saudi Arabia. This reflects the decision to lower selling prices for  India and China, the world's largest energy consumers. 

    Moscow is ready to sell below market price  to maintain income. The war in Ukraine costs a lot of money, and Russia is trying to preserve all  its sources of income.

    Conversely, Saudi Arabia is more inclined to keep oil prices high. As a result, Riyadh continues to reduce production  to boost market prices. "Saudi Arabia is anti-price cuts and anti-Russia," said Bruce Riedel, a former Middle East analyst at the US Central Intelligence Agency (CIA) and now a researcher at the Brookings Institution. 

    Riyadh's decision  to cut production again is a signal to the US and Russia, says Riedel. Saudi Arabia wants to signal to the US that Riyadh cannot always follow Washington's wishes.

    In Moscow, Riyadh meanwhile wants to send a signal of willingness to continue to maintain the market balance. "Saudi Arabia continues to test its position against its old ally, the United States, and its new ally, Russia," he said. 

    Relations with Saudi Arabia are very important for Russia. While the West withdraws its money, Saudi Arabia  invests in Russia instead. 

    Relations with Saudi Arabia are very important for Russia.When the West withdraws its capital, Saudi Arabia pumps funds into Russia instead. Riyadh is also increasing its oil imports from Russia. This is because the price is cheaper than domestic production. 

     Moscow-Riyadh alliance worries Washington. Soaring oil prices are making it difficult for the  Biden administration to slash prices on various essential commodities.Failure to bring down the prices of various essential goods will hamper Biden's attempt to win the 2024 election.

    Search : Putin,Crown Saudi Arabia, OPEC, OPEC Oil, OPEC Deal,Business,Putin News, Toby Keith



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