As the uncertainty and volatility of the global oil market persists, two of the biggest oil-producing countries, Russia and Saudi Arabia, are considering further output cuts in order to stabilize prices.
This was disclosed in a joint statement by the Energy Minister of Saudi Arabia, Prince Abdulaziz bin Salman Al Saud, and his Russian counterpart, Alexander Novak, after a constructive phone conversation.
The duo discussed the volatile situation of the global oil market and expressed their strong commitment towards the implementation of the agreed output cuts by OPEC+ and some top oil producing countries over the next two years.
The officials of both countries further said that they will continue to closely monitor the oil market, and are even prepared to take further measures jointly with OPEC+ and other producers, if deemed necessary.
It could be recalled that in March 2020, Saudi Arabia initiated a price war with Russia, leading to a 65% quarterly fall in crude oil prices globally. The price war was one of the major causes of the current oil market crash.
Following the intervention of US President, Donald Trump, OPEC+ and some top oil producers agreed to a deal which involves an output cut that could rise to as much almost 20 million barrels of crude oil per day over a specified timeline.
However, this has not had an immediate effect, as the oil demand has continued to dwindle because of the impact of the coronavirus pandemic; so the oil inventories continue to rise.