Russia, Saudi Arabia To Discuss Crude Oil Cooperation Agreement
$OIL
The talks follow OPEC’s meeting on 5 June in which the group kept its output policy unchanged
The Oil ministers of Saudi Arabia and Russia discussed a broad cooperation agreement Thursday at an economic forum in St Petersburg.
Saudi Arabia is the top Crude Oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and the world’s top exporter, while Russia, which is not an OPEC member, is the 2nd biggest Crude Oil supplier to the global markets.
Russia has stepped up contacts with OPEC after Crude Oil prices dove last year, but it has dismissed any suggestion it might cut output to prop up prices. OPEC has also refused to curb its output in order to defend market share.
A spokeswoman for Russia’s Energy Ministry confirmed the meeting but declined to comment.
The talks in Russia follow OPEC’s meeting on 5 June in which the group kept its output policy unchanged. Before the meeting, an OPEC delegate said the group would not cut supply unless non-OPEC producers contributed.
Saudi Arabia is pumping Crude Oil at a record high rate as it focuses on keeping market share, while Russian output hit a post-Soviet high of 10.71-M BPD in April.
Despite ample supply, Brent Oil prices have rallied to almost 65 bbl in Y 2015 after falling to 45 in January, supported by stronger-than-expected demand and signs the supply glut will ease.
| HeffX-LTN Analysis for OIL: | Overall | Short | Intermediate | Long |
| Neutral (0.24) | Neutral (0.24) | Bullish (0.35) | Neutral (0.14) |
Stay tuned…
HeffX-LTN
Paul Ebeling
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