Russia, Abu Dhabi agree to balance energy mkt

Iran oil exports highest since nuclear deal at 2.7 mln bpd

MOSCOW, Russia, June 2, (Agencies): Russia and Abu Dhabi on Friday signed a cooperation agreement to stabilise energy markets amid a rising trend in oil prices, the Kremlin said.

The deal, signed by Russian President Vladimir Putin and Abu Dhabi Crown Prince Mohammed bin Zayed Al-Nahyan, calls for both countries to maintain contacts “to ensure balance and stability on the world hydrocarbon market, taking into account the interests of producers and consumers”.

High oil prices are usually seen to be in the interest of producer countries, and lower prices in the interest of consumers. Russia and the OPEC cartel of oil producers including the United Arab Emirates at the end of 2016 reached a deal to cut production following a glut that had sent prices crashing and the crude sector into disarray.

“Our joint efforts, including our friends from Saudi Arabia and from the whole of the OPEC organisation, bring good results to stabilise the hydrocarbons market,” Putin said in a statement posted on the government website.

Meanwhile, Iran’s oil exports hit 2.7 million barrels per day (bpd) in May, the Oil Ministry’s news agency SHANA reported on Saturday, a new record since the lifting of international sanctions on Tehran in 2016, and despite the threats of fresh US sanctions.

US President Donald Trump on May 8 said the United States was exiting a 2015 nuclear deal with Iran and would impose new sanctions that seek to reduce the country’s oil shipments. Iran exported 2.4 million bpd of crude oil in May, SHANA reported, and 300,000 bpd of natural gas condensate.

Iran’s oil exports was 2.6 bpd in April.

The estimates from Genevabased Petro-Logistics suggested this week that Iranian oil buyers are not rushing to cut volumes from OPEC’s third-largest producer. The US sanctions have a 180day period during which buyers should “wind down” purchases.

The bulk of Iran’s crude exports, at least 1.8 million bpd, goes to Asia. Most of the rest goes to Europe and these volumes are seen by analysts and traders as the more vulnerable to being curbed by US sanctions.