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MBS, Putin to discuss oil production on sidelines of World Cup

MBS, Putin to discuss oil production on sidelines of World Cup

Saudi Arabia ” Russian President Vladimir Putin and and Saudi Crown Prince Mohammed bin Salman will discuss how to boost oil production while maintaining their petro-alliance when they meet in Moscow tomorrow to watch the soccer World Cup’s opening match between the two countries.

The world’s largest oil exporters are negotiating how to rework their unprecedented, and successful, deal to control oil production as US sanctions on Iran and the collapse of the Venezuelan petroleum industry threaten to send crude skyrocketing. They must also contend with President Donald Trump, who used his Twitter account on Wednesday to attack OPEC for artificially inflating prices.

“This is the most political OPEC meeting in a long time,” said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd.

Both Saudi Arabia and Russia have proposed plans for the so-called OPEC+ group that would add as much as 1 million barrels a day, about 1 percent of global output, although Riyadh prefers a smaller increase. The back and forth signals major differences remain, even between Riyadh and Moscow, who’ve worked very closely over the past two years.

Reaching an understanding between Russia and Saudi Arabia may prove easier than obtaining a wider agreement among the 24 countries bound by the agreement first struck in late 2016. The Organization of Petroleum Exporting Countries meets in Vienna on June 22 and Iran, Venezuela and Iraq have publicly set themselves against a production increase.