MOSCOW: The head of Russia’s sovereign wealth fund Kirill Dmitriev sees no point in extending strict global oil output cuts as world economies and oil demand recovers from the depths of the coronavirus crisis, he told the RBC Daily newspaper.
The comments from Dmitriev, who is one of Moscow’s top negotiators in oil talks, indicate that Russia wants curbs to be eased from August as envisaged by the existing plan.
The Organization of Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, are cutting output by a record 9.7 million barrels per day (bpd), some 10 percent of global supply, after demand plunged by up to a third during the crisis.
A panel of the OPEC+ producers left the door open on Thursday to extending or easing those cuts from August, while pressing a number of countries, such as Iraq and Kazakhstan, to improve their compliance.
“We already see that economies have started to emerge from the coronavirus and markets are recovering, supporting oil demand, so there is no point to extend strict curbs for longer than a month (after July),” Dmitriev told RBC Daily.
The existing plans calls for the cuts to fall to 7.7 million bpd from August and stay at that level until December. It then envisages further cuts, easing to 5.8 million bpd from January 2021 through April 2022 when the pact is due to expire.
Oil prices have recovered to $42 per barrel from a 21-year low of below $16 in April. This is back at the level where Russia is balancing its budget and energy minister Alexander Novak said this week Moscow is happy with the current price.
No need to extend OPEC+ oil cuts beyond July – Russian negotiator
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No need to extend OPEC+ oil cuts beyond July – Russian negotiator
- OPEC+ cutting output by a record 9.7 million barrels per day, some 10 percent of global supply
Saudi-US roundtable meeting held to strengthen economic relations
RIYADH: The Saudi-US Roundtable was held in Riyadh on Jan. 20, coinciding with the ninth session of the Saudi-US Trade and Investment Association, organized by the General Authority for Foreign Trade.
The meeting was attended by the Deputy Governor of International Relations at GAFT Abdulaziz Al-Sakran and the Secretary General of the Federation of Saudi Chambers Waleed Alorainan. It was also attended by the President and CEO of the Saudi-US Business Council Charles Hallab and representatives from government agencies, as well as 83 private sector companies.
The meeting reviewed ways to strengthen economic relations between Saudi Arabia and the US. It also explored opportunities for trade and investment cooperation in various sectors that play a fundamental role in developing trade ties and increasing bilateral trade volume, which reached approximately $33 billion in 2024.
Al-Sakran indicated that the roundtable meeting comes within the framework of the authority’s keenness to enhance the role of the private sector in developing trade relations by enabling it to access foreign markets and removing all external obstacles it faces, in coordination with relevant entities.
He noted that trade relations between the Kingdom and the US have witnessed significant economic activity, resulting in a trade volume exceeding $500 billion over the past decade.
It is worth noting that GAFT works to develop bilateral trade relations by overseeing business councils and coordination councils. In addition, it enables Saudi Arabia’s non-oil exports to access foreign markets and helps overcome the various challenges they face.
