LONDON: Oil prices rallied on Monday by up to five percent after Saudi Arabia and Russia vowed to stabilize the market.
Energy, Industry and Mineral Resources Minister Khalid Al-Falih and his Russian counterpart Alexander Novak declared they had agreed to “act together” to steady the market, on the sidelines of a G20 meeting in China.
In reaction, Brent North Sea crude leapt as high as $49.40 a barrel. US benchmark West Texas Intermediate (WTI) soared to $46.53, AFP reported.
Prices later pulled back as Saudi Arabia ruled out the need to trim back production. Saudi Arabia and Russia “noted the particular importance of constructive dialogue and close cooperation between the largest oil-producing countries with the goal of supporting the stability of the oil market,” the ministers said in a joint statement.
“To this end the ministers agreed to act together or in cooperation with other oil producers,” the statement said, adding they had agreed to set up a “joint monitoring group” to offer recommendations aimed at preventing price fluctuations.
Novak described the announcement as marking a “new era” in cooperation between Russia and Saudi Arabia and insisted that it would have a “critical significance” for oil markets, Interfax reported.
After meeting Novak, Al-Falih told Al-Arabiya channel there was “currently no need to freeze production.”
He said: “A freeze is one of the preferred options but it is not needed for the moment.”
Oil rallies on Saudi-Russia pledge to steady prices
Oil rallies on Saudi-Russia pledge to steady prices
Syrian foreign minister congratulates Saudi counterpart on Founding Day
- Asaad Al-Shaibani and Prince Faisal bin Farhan also discuss developments in Syria and the wider region, as well as bilateral cooperation
- This year’s Founding Day marked the 299th anniversary of the establishment of the First Saudi State
RIYADH: Syria’s foreign minister, Asaad Al-Shaibani, on Monday congratulated his Saudi counterpart, Prince Faisal bin Farhan, on Founding Day, which this year marked the 299th anniversary of the establishment of the First Saudi State.
During their telephone conversation the ministers also discussed the latest developments in Syria and the wider region, along with ways in which they might strengthen bilateral relations, the Saudi Press Agency reported.
Prince Faisal reaffirmed the Kingdom’s support for Syria’s sovereignty, unity and territorial integrity, and highlighted the need for regional stability and security, the Syrian Arab News Agency said.
Founding Day, which was introduced in 2022, is celebrated each year on Feb. 22 and marks the founding of the First Saudi State in 1727.
