News Daily Spot: Our Every Day Oil : The Russian-Saudi oil deal

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Our Every Day Oil : The Russian-Saudi oil deal


In bilateral meetings held between the attending leaders within the framework of the G20 meeting, there was a meeting that has immediate results. We talked about the oil agreement has been established between Russia and Saudi Arabia.

It is of little significance this event, in fact the market impact was immediate and the price per barrel rose more than US $ 0.70, to formalized the agreement signed by the energy ministers of both countries, so says analyst Ecnomus, Rafael This firm is the result of the meeting between President Putin and prince Mohammed Bin Salman Arabia, who is second in line of succession to the throne.

The cooperation agreement includes the possibility of reducing production, first effective step in controlling the excess supply to suit the pace of changes in demand. For this, both countries agreed to establish a panel of experts to monitor market developments and suggest sets of proposals to maintain balance.

This agreement is an auspicious prelude to the International Energy Forum to be held in Algeria from 26 to 28 September, where they will happen informal meetings of energy ministers and oil and will preamble of the summit meeting of November 30, the official headquarters of OPEC in Vienna.
This agreement occurs after several OPEC member countries have called to moderate the level of production to avoid falling prices in the oil market and is particularly relevant because it involves an agreement between two of the most important producers.

Saudi Arabia had avoided making an explicit commitment to reduce their production volumes and export, requiring a consensus among all member countries of the organization, a proposal rejected by the Iranian government, which argued that this sanctions dragged on Western powers had imposed on the Islamic Republic of Iran.

The reasons for Saudi Arabia to change its initial position have to do with budgetary difficulties facing the kingdom, which have caused tensions between the population and have forced the government to increase the number of expulsions of foreigners who come and live in Saudi Arabia as workers.

The framework has been defined where the agreement is the most auspicious, as the world's eyes are focused on the G20 meeting in Beijing. The Chinese President, Xi Jinping, is the host of this meeting which brings together the world's major economies, its members contribute a little over 90% of global GDP and account for 80% of world trade.

President Jinping, has not missed a worldwide audience and has defined a speech that advocates the preservation of free trade and reducing trade restrictions, as a mechanism to reduce tensions between nations and reduce economic disparities that persist.

This forum seeks international financial and economic stability and consolidation has shifted to other full bodies, the G8 and the G8 + 5, most traditional, as real spaces to discuss relevant economic issues.

Produced by:
Rafael Antolinez / Noticias24

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