The Kremlin: Important oil talks between Russia and Saudi Arabia as OPEC + is looking into expectations of weak oil demand

On Monday, Russia and Saudi Arabia were in important oil talks, and that the leaders of the two energy-rich countries had recently made phone calls aimed at stabilizing crude markets.

Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman made two phone calls last week to discuss oil markets, which are being ravaged by the Coronavirus pandemic, and a weak request.

Meanwhile, Sources in OPEC + said that the group of oil-producing countries will meet on Monday to discuss expectations of weak demand in light of the high cases of Coronavirus and increased production in Libya, but it is unlikely to recommend immediate action.

A joint ministerial monitoring committee, including the two major producers Saudi Arabia and Russia, is scheduled to meet, starting at 1330 GMT.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, as part of what is known as OPEC +, have been reducing production since January 2017 in an effort to balance the market, support prices and reduce stocks.

The group is currently curbing production by 7.7 million barrels per day, down from 9.7 million barrels per day, and the cuts are set to reduce 2 million barrels per day by January.

Several OPEC watchers, including analysts from the US investment bank JP Morgan, say the pessimistic outlook for demand may push OPEC + to delay any easing of cuts. 

But the UAE and Russia have said the cuts will be cut as planned.

The group meets again on 30 November.

Last week, OPEC + experts discussed the risks of continuing oversupply in 2021 in the event of the outbreak of a second, fatal and prolonged wave of the Covid-19 pandemic.

“The demand in itself still appears weak,” OPEC Secretary-General Mohamed Barkindo said last week.