Energy titans’ link goes beyond oil
Saudi Arabia and Russia account for more than a fifth of global oil production and also together hold the lion’s share of crude oil spare capacity of around 2.8 million barrels per day (bpd).
The Kingdom has about 2.3 million bpd of spare capacity, while Russia holds about 500,000 bpd.
However, the symbiotic relationship between the pair goes beyond oil. As a major gas producer, Russia wants a stable oil market because the price of both commodities is linked. Oil and gas accounts for about 80 percent of total Russian income.
Two years ago, King Salman made a historic trip to Moscow, the first by a Saudi king to the Russian Federation. The visit of the Russian leader Vladimir Putin to the Kingdom is the first in 12 years.
That is why closer ties between Saudi Arabia and Russia is not just about oil but also about the stability of the global economy.
Faisal Faeq
The relationship between the two countries is growing stronger and will strengthen further in the coming years as their energy objectives grow increasingly in alignment.
The world has already benefited from Saudi-Russian cooperation in the OPEC+ oil output cuts that started back in January 2017. This partnership has been vital in restoring balance to oil markets and the global economy.
Since the Kingdom and Russia are among the top 20 economies in the world, there have been several exchanges between the Saudi crown prince and the Russian president during the G20 meetings.
Perhaps the most important of these was at the G20 summit in China in 2016, which led to the OPEC+ agreement.
Both Russia and Saudi Arabia understand that volatile oil prices hinder investment, limit growth and make for a more unstable world.
That is why closer ties between these two energy titans is not just about oil but also about the stability of the global economy.
• Faisal Faeq is an energy and oil marketing adviser. He was formerly with OPEC and Saudi Aramco.
Twitter: @faisalfaeq.
