On Monday, the Kremlin announced a phone call between Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin to discuss cooperation among OPEC+ countries to stabilize the oil market. The Joint Ministerial Monitoring Committee (JMMC) of OPEC+ (Organization of Petroleum Exporting Countries and allies led by Russia) will hold a virtual meeting on February 1 and is expected to recommend maintaining the current oil output policy, according to OPEC+ delegates.
Despite the disagreement between the US and Saudi Arabia over OPEC+ oil output targets last year, Saudi Foreign Minister Prince Faisal bin Farhan recently noted the current oil price stability as proof of the Kingdom’s right decision. However, supply may be impacted by recent Western sanctions on Russia’s oil industry and December’s price caps on Russian products.
Bilateral moves by the Crown Prince and Vladimir Putin to inflate oil prices in October by cutting production, received heavy condemnation from the US Government, with Biden threatening “serious consequences” for the move which saw prices soar at US pumps before the mid-terms. Fortunately Biden’s threat’s were hollow, and relations are back on a friendly footing after a rocky-2022 between the US and Saudi Arabia.
