Putin signs deal with Abu Dhabi as Russia and OPEC signal they want to put brakes on recent oil price rises
- Russia and OPEC stepped in to cut production in 2014 when prices crashed
- Since then there has been a steady rise in prices back to levels seen then
- They are now signalling an increase in production in a bid to rein in more rises
- OPEC member Abu Dhabi and Russia signed deal to ‘ensure balance’ in market
Russia and Abu Dhabi have signed a deal to stabilise energy markets amid as oil prices continue to rise.
The OPEC cartel of oil producers – including the United Arab Emirates – and Russia reached an unprecedented deal at end of 2016 deal to cut production following a glut that had sent prices crashing and the crude sector into disarray.
Since then OPEC and Russia have worked closely to maintain the price of oil but also to prevent prices rising, which would hurt consumers and encourage rivals to step up their production.
Russian President Vladimir Putin (R) greets Abu Dhabi’s Crown Prince Mohammed bin Zayed Al-Nahyan at the Kremlin
The latest deal, signed by Russian President Vladimir Putin and Abu Dhabi Crown Prince Mohammed bin Zayed Al-Nahyan, calls for both countries to maintain contacts ‘to ensure balance and stability on the world hydrocarbon market, taking into account the interests of producers and consumers’.
Last month Russia and Saudi Arabia said they believe a deal is possible to gradually boost oil output from as soon as July as world oil prices begin to rise to 2014 levels.
Abu Dhabi, one of seven states in the United Arab Emirates, holds more than 90 percent of the federation’s 98 billion barrels of crude oil reserves.
The UAE is OPEC’s fourth largest crude oil producer.
President Putin talks to Crown Prince Mohammed bin Zayed Al-Nahyan and other members of the Abu Dhabi delegation in the Kremlin
Abu Dhabi’s Crown Prince, Sheikh Mohammed bin Zayed al-Nahyan. Abu Dhabi produces 80 per cent of the UAE’s oil
A Russian oil rig in the Caspian Sea. President Putin said he would be happy for oil prices to fall back to $60 a barrel
Putin recently said Moscow would be satisfied with the price of crude oil dropping to $60 per barrel.
‘Our joint efforts, including our friends from Saudi Arabia and from the whole of the OPEC organisation, bring good results to stabilise the hydrocarbons market,’ Putin said in a statement posted on the government website.
‘I think our cooperation will increase, including with the signing of the declaration on a strategic partnership,’ the crown prince told Putin in translated comments.
He said that he expected the volume of trade between the countries ‘to continue to strengthen exponentially.’
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