Saudi-Russia cooperation to stabilise oil prices

A new proposal to improve cooperation between Saudi Arabia and Russia has been proposed to address the drop in global oil prices.

Buoyed by the news, oil process extended gains as London Brent crude for November delivery went up 22 cents at $47.85 a barrel, Reuters reported.

Qatar welcomed the Saudi-Russian agreement. The Gulf Country’s Oil Minister Mohammed Al-Sada said this would help the oil markets rebalance.

This coincides with Russia’s improving relations with other Middle Eastern and North African countries and Turkey. The two countries normalised ties in June, and Turkish President Erdogan met with Putin at the G20 summit to discuss cooperation. There is also a joint trust fund between the two countries underway, announced Russian Economy Minister Alexey Ulyukaev.

Russian Energy Minister Alexander Novak said Russia described the move as a strategic energy partnership which would see the two countries cooperating with a high level of trust which would allow them to address global challenges.

The Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC producers such as Russia will hold informal talks in Algeria later this month.