Saudi Arabia discusses oil production with Russia and US

King Salman of Saudi Arabia held a telephonic conversation with Presidents of America and Russian, Donald Trump and Vladimir Putin and reviewed the importance  of cooperation between oil producing countries.

Arab media reported that Saudi Arabia’s King Salman along with Donald Trump and Vladimir Putin reviewed he importance of cooperation between oil producing countries, after Thursday’s OPEC+ meeting.

All three leaders stressed the importance of cooperation between oil producing nations to maintain stability of energy markets and support growth in global economy.

OPEC

OPEC and its allies agreed to cut oil output by more than a fifth and said they expected the United States and other producers to join in their effort to lift prices that have been pummelled by the coronavirus outbreak

Oil output cuts to start on May 1 and last through June 30, followed by smaller cuts through April 2022.

Saudi Arabia-led OPEC and Russia-led non-OPEC oil producing nations started their 9th (Extraordinary) OPEC and non-OPEC ministerial meeting via webinar.

The group dubbed OPEC+ will lower its crude oil production by 10 million bpd for a two-month period from May 1 until June 30, according to the statement.

For the following six months, from July 1 to Dec. 31, the output cut will be 8 million bpd.

This will then adjusted to a 6 million bpd cut for 16 months, from Jan. 1, 2021 to April 30, 2022.

The baseline for the oil production cuts will be the oil output levels of OPEC+ members from last October. However, heavyweights Saudi Arabia and Russia will apply the cuts based on their output of 11.0 million bpd.

While the current agreement will be valid through April 30, 2022, its extension will be reviewed in December 2021.

OPEC+ members will meet on June 10 this year via webinar to determine whether any other actions are needed to balance the oil market.