Oil price up on Saudi-Russia deal
CRUDE prices rose in Asia yesterday after Russia and Saudi Arabia pledged to work on addressing a global supply glut, but analysts said gains would likely be limited after the two sides provided scant detail about their plans.
The Saudi Energy Minister Khaled Al-Falih and his Russian counterpart Alexander Novak agreed to “act together” to steady the market but stopped short of a production freeze.
The ministers said they will act “together or in cooperation with other oil productions” and agreed to set up a “joint monitoring group” to offer recommendations to prevent price fluctuations.
News that the two sides were about to make an announcement sent prices soaring on September 5 but the gains were all but wiped out after the statement.
The comments come three weeks before Russia joins OPEC to discuss the supply crisis that has hammered prices for two years. –