OPEC, Russia discuss 10-20 year oil cooperation, says Saudi Crown Prince
The Organization of the Petroleum Exporting Countries (OPEC) is seeking a long-term cooperation agreement with Russia and other non-OPEC producers on oil output controls, the Saudi Crown Prince, Mohamed Bin Salman, said today.
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Speaking in an interview with Reuters held in New York, Salman said: “We [OPEC producers and Russia] are working to shift from a year-to-year agreement to a 10-20 year agreement.”
“We have agreement on the big picture, but not yet on the detail,” he added.
Last year, Saudi Arabia, top OPEC producer, hired Russia and other producers to cooperate on oil supply curbs after crude prices collapsed from over $100 per barrel in 2014 to below $30 in 2016. Last week, the Saudi energy minister, Khalid Al-Falih, said that Riyadh hoped to extend the deal to 2019.
The crown prince pointed out that a flotation of 5 percent of the Saudi state-owned oil company “Aramco” could take place either late 2018 or early 2019 “depending on market conditions.”
Crude prices has recovered to $70 per barrel but fast-growing oil exports from the United States (US)’s producers have restricted prices.
Al-Falih said earlier that the agreement between OPEC and non-OPEC producers had helped in absorbing two-thirds of the surplus reserves from the Saudi market.