Russian Energy Minister Alexander Novak said that discussions among leaders in the 20th Summit Group in Japan would clarify uncertainties about running the oil market ahead of the OPEC meeting next week.
Novak when asked by journalists said there will be more clarity and more visibility after the G20 summit if he expects an extension of OPEC + cuts in the Vienna meeting. “We hope that the decisions that will be taken will help shed light on the future of the oil market,” he added.
While the peaks of G-20 leaders traditionally focus on a wider range of geopolitical issues in climate change, recent meetings have also set the stage for policy decisions by the Oil Exporting Organization and its allies. In December, Russian President Vladimir Putin and Saudi King’s Crown Mohammed bin Salman used the event in Buenos Aires to agree to expand their manufacturing deal, days before the meeting of their oil ministers.
This year, Putin and Prince Mohammed have set a meeting at the G-20 borderline again, with issues of the oil market on their agenda, according to the Kremlin. Novak also plans talks with his Saudi counterpart Khalid Al-Falih in Osaka. The statement by the Russian president after his meeting with the Saudi royal government may provide information on his country’s position on potential repossession of OPEC + cuts.
So far, Russia has been linked to an approach of anticipation and visibility about the future of the deal, unlike the strong advocacy position of a Saudi state. The idea is faced with the opposition of the largest oil producer Rosneft PJSC, who argues that the deal reduces the nation’s share of the global oil market.
On Friday Novak in Osaka said Russian oil producers’ positions and government will always be consolidated according to the Russian news agency Interfax while on Tuesday Putin summon Russian oil leaders to discuss the future of the OPEC agreement. Companies “take a full view of the situation,” not focusing only on increasing output, the president said.
When asked by FT if OPEC + would extend the deal, Putin said, “You will find this in the coming days.”/Investing.com