Saudi Arabia tries to convince Russia to cut oil production

VIENNA (Reuters) – Saudi Arabia sought to persuade Russia on Wednesday to cut oil production substantially with OPEC next year in an attempt to arrest a decline in the price of crude and prevent another global glut.

OPEC meets on Thursday in Vienna, followed by talks with allies such as Russia on Friday. The producer group’s de facto leader, Saudi Arabia, has indicated a need for steep reductions in output from January but has come under pressure from US President Donald Trump to push oil prices even lower.

Russian Energy Minister Alexander Novak told reporters he had held a “good” meeting with his Saudi counterpart Khalid al-Falih on Wednesday and that they would have more talks.

Saudi Arabia has indicated it wants the Organization of the Petroleum Exporting Countries and its allies to cut output by at least 1.3 million barrels per day, or 1.3% of global production.

Riyadh wants Moscow to contribute at least 250,000-300,000 bpd to the cut but Russia insists the amount should be only half of that, OPEC and non-OPEC sources said.

Oman’s oil minister said he believed OPEC and its allies would reach a deal this week to cut oil production.

“It is not easy but we will always work together with our colleagues,” United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui told reporters in Vienna when asked about Russia’s position.