Investing.com – Saudi Arabia and Russia signed a joint statement Monday to cooperate on stabilizing oil markets.
Russian energy minister Alexander Novak stated the agreement was a “historic moment” in relations between OPEC members and those producers that did not form a part of the organization, according to a report from Interfax.
Novak added that Russia and Saudi Arabia have agreed on joint actions on oil markets, insisting that there are specific instruments for stabilization, including a production freeze.
The Russian energy minister also reportedly indicated that both countries will form a working group on cooperation in the field of oil and gas and will meet in Moscow in October.
That meeting would follow plans for OPEC members to hold an informal meeting on the sidelines of the International Energy Forum to be held September 26-28 in Algeria.
Meanwhile, Saudi Arabian oil minister Khalid al-Falih said that the agreement with Russia aims to encourage other oil producers to participate, according to Reuters.
Al-Falih said he was optimistic about reaching a consensus ahead of the next OPEC meeting that will take place in Vienna in November.
While the Saudi minister insisted that he would like Iran to have a constructive role in any agreement, Novak underlined that Iran should have the right to reach pre-sanction levels of production.
Oil originally spiked more than 5% on reports that the two countries planned to make a joint statement at the G20 meeting in China on Monday, with West Texas Intermediate and Brent hitting intraday highs of $46.53 and $49.38, respectively.
Following the statement and subsequent remarks, black gold pared its gains. U.S. crude oil futures gained 3.33% to $45.62 at 7:10AM ET (11:10AM GMT), while Brent oil rose 2.67% to $48.08.