Saudis want Russia in new global oil club

DUBAI: Saudi Arabia hopes to bring Russia into the fold of an expanded club of global oil giants to sustain a stable market, leaving Opec’s role in question, analysts say.

The new union, spearheaded by Riyadh and Moscow, is expected to be larger than the 14-member Opec oil cartel, which has dominated the global energy market for the past six decades.

But experts say an expanded group that includes Russia means Opec’s sway in global oil is fading, if not all but “dead”.

In January, Opec kingpin Saudi Arabia floated the idea of extending a cooperation agreement struck in late 2016 by 24 Opec and non-Opec producers to trim output and shore up prices.

Top Saudi officials, including Crown Prince Mohammed bin Salman, and Energy Minister Khaled al-Faleh, have called for a long-term cooperation framework between oil producers.

The idea received strong support from several Opec members, mainly the United Arab Emirates and Kuwait.

A Kremlin spokesman said last month that Russia and Saudi Arabia have been discussing a “wide range of options” on cooperation in the global oil market.

Opec and non-Opec countries will meet in Jeddah today to assess compliance with production cuts and to discuss potential long-term cooperation.

Producers have already been encouraged by the success of their broadened cooperation, which helped restore balance to the crude market, rebounding prices from as low as US$26 a barrel to above US$70 a barrel. – AFP