Saudi Arabia and Russia planning informal meeting in Doha

We may see oil prices rise when Saudi Arabia and Russia meet in the coming days.

Photo: Hasan Jamali/AP/Polfoto/Arkiv

It looks as though Russia's Minister of Energy, Alexander Novak, will meet with Saudi Arabia's counterpart, Khalid al-Falih, at an informal meeting at Doha on Nov. 17 and 18.

This was confirmed by the Russian energy minister, reports Bloomberg News.

This has sparked rumors that the oil price will rise again. The Organization of Petroleum Exporting Countries (OPEC) is in the process of laying the groundwork ahead of an official meeting in Vienna Nov. 30. The agenda is focused on how the production of oil can be limited, or in the best case, frozen.

Above all, the OPEC players want to see the oil price increase again, which requires a scaling back on production. However Saudi Arabia, Iran, and Iraq continue to disagree as to how the reduction burden is divvied up.

Two years ago, Saudi Arabia began to flood the market with cheap oil in order to keep Iraq and Iran from becoming major exporters. However the two countries have not been scared off, which is why the oil price has sat at extremely low levels over the last few years. The declining earnings which have followed have begun to hurt the economy of the world's largest oil country itself, Saudi Arabia.

The parties agreed on interim production limitations at an informal meeting in Algeria on Sep. 28 after two years of limited production, but OPEC countries have not reached agreement as to how they are to limit production in practice.

In the wake of the Algeria agreement, the oil price rose to almost USD 54 per barrel in October, while the price has since fallen to USD 47 per barrel, in step with renewed doubts on the sustainability of the agreement.

Russia, which is one of the largest producers of fossil fuels beyond OPEC, is also believed to be a critical player in the attempt to cap production. As such, Saudi Arabia will attempt to include the country in an eventual Vienna agreement.

Maersk is burned by its own restructuring plan

Putin warns that Ukraine could plunder gas

Russian minister accused of taking bribe from oil company 

More from EnergyWatch

WindEurope warns against negative auction bids

If more countries introduce negative bids, where firms pay to establish wind projects, it could lead to higher electricity bills or more pressure on the supply chain, says the industry association.

BW Offshore halved bottom line in Q1

The Norwegian firm reports decline in several items compared to the same quarter of 2021 but predicts fine advancement in the rest of 2022, for which both floating wind projects and high energy prices show promise.

Equinor exits Russia

Norwegian oil company Equinor has taken its final step out of the Russian market by transferring joint venture assets to Rosneft.

Further reading

Related articles

Latest News

See all jobs