Saudi, Russia in secret deal to hike oil output

moscow/dubai — Russia and Saudi Arabia struck a private deal in September to raise oil output to cool rising prices and informed the United States before a meeting in Algiers with other producers, four sources familiar with the plan said.

US President Donald Trump has blamed the Opec for high crude prices and called on it to boost output to bring down fuel costs before the US congressional elections on November 6.

The deal underlines how Russia and Saudi Arabia are increasingly deciding oil output policies bilaterally.

The sources said Saudi Energy Minister Khalid Al Falih and his Russian counterpart Alexander Novak agreed during a series of meetings to lift output from September through December as crude headed towards $80 a barrel. It is now over $85.

“The Russians and the Saudis agreed to add barrels to the market quietly with a view not to look like they are acting on Trump’s order to pump more,” one source said.

“The Saudi minister told [US Energy Secretary Rick] Perry that Saudi Arabia will raise output if its customers asked for more oil,” another source said.

Originally, the two countries had hoped to announce an overall increase of 500,000 barrels per day from Saudi-led Opec and non-Opec Russia at a gathering of oil ministers in Algiers at the end of September.