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Ministry of economic development of the Russian Federation

Saudi Arabia, OPEC+ played key role in oil market stabilization, says Russian ministry

25.10.2019

The situation on the global oil market is currently stable and Saudi Arabia, which is Russia’s partner under the OPEC+ agreement, made a large contribution for its stabilization, Russia’s Energy Ministry said in a statement on Friday.

The ministry stressed that after drone attacks on Saudi Aramco’s oil facilities in September, Saudi Arabia was able to quickly restore its oil production capacity.

"We note the important role of our partners from Saudi Arabia and the OPEC+ countries in minimizing the effect of destabilizing actions on the market. The prompt restoration of production capacities in the kingdom after the drone attack once again underscored the professionalism and reliability of the largest producers in the industry, as well as the ability to quickly respond to uncertainties," the ministry said.

"Russia continues to intensively cooperate with the Kingdom of Saudi Arabia and OPEC+ partners in order to increase the stability and predictability of the market," the statement said.

According to the Energy Ministry, "the unpredictability of the outcome of trade negotiations between the US and China, as well as the risks of a slowdown in global GDP growth" are the main factors affecting the uncertainty of world market.

RDIF Director General Kirill Dmitriev said earlier that swift resumption of oil production in Saudi Arabia proved Aramco’s high professionalism and stability in the face of a serious attack on the oil sector and global economy. Russia’s strategic partnership with Saudi Arabia continues to play a key role for the establishment of OPEC+ and stabilization of oil markets.

Drone attacks

The facilities of the national oil company Saudi Aramco in the east of Saudi Arabia were attacked by ten drones in the small hours on September 14. Yemeni Houthi rebels from the Ansar Allah movement claimed responsibility for the incident. Particularly, the world’s biggest oil refinery near the city of Abqaiq and a refinery near Khurais, where Saudi’s second largest oil field is located, came under the attack.

The U.S., Saudi Arabia, the U.K., France and Germany blamed Iran for the attacks. According to them, the attacks involved drones and missiles, which are not in the arsenal of Houthi rebels. Tehran denied the accusations calling them groundless.

As a result of the attacks, the kingdom reduced crude production by 5.7 mln barrels per day out of 9.8 mln barrels.

Explosions at the oil facilities in Saudi Arabia led to a sharp jump in oil prices. By mid-September, Brent oil price exceeded $70 per barrel. As the oil production in Saudi Arabia is gradually restored, the oil price is adjusted.

Source: TASS



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