Russia, Saudi Arabia to discuss oil market, prices amid Israel-Hamas war

MOSCOW: Saudi Arabia and Russia, the world’s top two oil exporters, will discuss the situation on the oil market and oil prices on Wednesday amid the escalating conflict between Israel and Hamas, President Vladimir Putin’s top oil official said.

Crude oil prices spiked in the wake of a massive incursion into Israel from Gaza launched by the Palestinian Islamist group on Oct 7.

Russian Deputy Prime Minister Alexander Novak greeted Saudi Arabia’s Minister for Energy Prince Abdulaziz bin Salman in Moscow on Wednesday in a video posted online by Russian journalists.

They are due to take part in an energy conference in Moscow. Russia and Saudi Arabia will also hold a meeting of their inter-governmental commission.

Novak said that Russia and Saudi Arabia would discuss the impact of the conflict in the Middle East which the Kremlin has warned could swiftly escalate into a regional conflict.

“We will discuss it… Such events in the world one way or another can influence the situation with the consumption of energy resources,” the Interfax news agency quoted Novak as saying.

Putin is scheduled to address the forum on Wednesday. Iraqi Prime Minister Mohammed Shia Al-Sudani and some OPEC representatives are also expected to attend.

Saudi and Russia have coordinated supply cuts in recent years to support oil prices.

They have agreed to continue with voluntary oil supply cuts of a combined 1.3 million barrels of oil per day, or more than 1% of global demand, to the end of the year.

Saudi Arabia said on Tuesday it is working with regional and international partners to prevent the escalation of the situation in Gaza and neighbouring areas, and reaffirmed it supports efforts to stabilise oil markets.

Israel produces very little crude oil, but markets are worried that the conflict could escalate and disrupt Middle East supply, worsening an expected deficit for the rest of the year. – Reuters