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Putin agrees with Saudis to continue cutting production

Russian President Vladimir Putin announced on Friday that he had reached agreement with Saudi Arabia on extending their agreement to drop oil production to support prices.

"We have agreed, we will extend this agreement, Russia and Saudi Arabia, for which we will think about it, six or nine months, and maybe nine months." he told reporters at the margins of the G20 Summit in Osaka, Japan.

This should be formalized on Tuesday in Vienna, at a meeting of ministers of 14 members of the Organization of the Oil Exporting Countries (OPEC), including Saudi Arabia, and their ten partners headed by Russia. .

OPEC and its allies, pumping up half of the world's oil, decided in December to reduce their combined bid of 1.2 million barrels a day. The strategy paid off as the price per barrel increased by about 30% in the first trimester before softening.

"We believe our supply stabilization agreements (…) have had a positive effect," Putin said in an interview for the Financial Times this week, saying that the country's producers would demand in Vienna to maintain the "stability" of the market, faced with abundant offer and low demand.

Arrived on Saturday night in Vienna, where OPEC headquarters, Saudi Energy Minister Khaled al-Falih, said his "inclination" renewed the supply limit for the duration. nine months and the same volume.

"We will talk about it" at meetings of oil exporting countries beginning on Monday in the Austrian capital, said Mr. Al-Falih, interviewed by journalists. Stressing that oil demand "is slowing a bit, but (the market) is still solid," he said he hopes to rebalance "for six to nine months."

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