Russian Energy Minister, Alexander Novak, will host his Saudi Arabian counterpart, Khalid al-Falih, in Moscow on Monday, June 10th, to discuss extending Opec oil production cuts, Reuters has reported.
Both Saudi Arabia and Russia, considered top crude oil exporters, are still battling against the rise in oil prices. Moscow is looking to increase oil production to set the price per barrel between $60 and $65.
Meanwhile, Saudi Arabia wants to maintain its $1.2 million daily barrel limit agreed with Russia back in December 2018.
Russia expects that further production curbs would leave major gaps in the market that would be replaced by American oil producers. Those gaps are presently in Europe, where Russian oil exports face fierce rivalry from American oil producers.
Saudi Energy Minister, Khalid al-Falih, said, “Aramco would like to sign a treaty with Russia regarding natural liquid gas 2 at the North Pole”.
“Russia is the only remaining country that did not take a decision to extend the Opec+ deal until 2019,” he commented.
“Investments in projects or equity in Russia’s Sibur Petrochemical Company may be of interest to Saudi Arabia,” he is reported as saying.
The ministers are not expected to agree to an extension of cuts today, but Mr. al-Falih believes that Russia will eventually agree to an extension, possibly in exchange for a commitment to revisit at short notice.