The Kremlin signaled on Monday a new round of oil talks with Saudi Arabia as producer group OPEC+ meets on Monday to discuss the weakening demand outlook in the face of rising coronavirus infections.
“Those markets are volatile, and we are at an active stage of cooperation, exchange of opinions. That is why it requires regular contacts,” the Kremlin spokesman Dmitry Peskov told reporters.
Russian President Vladimir Putin and Saudi Arabia Crown Prince Mohammed bin Salman held two phone calls last week to discuss oil markets.
OPEC+ sources said the group was unlikely to recommend immediate action on Monday. An OPEC+ joint ministerial monitoring committee, comprising top producers Saudi Arabia and Russia, is scheduled to meet from 13:30 GMT.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, have been reducing output since January 2017 in an effort to balance the market, support prices and reduce inventories.
They are currently curbing production by 7.7 million barrels per day (bpd), down from 9.7 million bpd, and are due to taper cuts by 2 million bpd in January.
Several OPEC watchers, including analysts from U.S. investment bank J.P. Morgan, have suggested that a bearish demand outlook could prompt OPEC+ to delay any easing of the reductions. The United Arab Emirates and Russia, however, have said that cuts would be eased as planned.
The group will meet again on Nov. 30.
OPEC+ experts last week discussed risks of a persisting supply overhang in 2021 in the event of a prolonged and severe second wave of the COVID-19 pandemic.
“Demand itself is still looking anemic,” OPEC Secretary-General Mohammad Barkindo said last week.
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