Russia and Saudis say they will stabilize oil production?

AP/Fuel Fix:
The world’s two largest oil producers, Russia and Saudi Arabia, on Monday agreed to act together to stabilize global oil output, though it’s unclear what that might entail.

Energy ministers Alexander Novak and Minister Khalid al-Falih met Monday on the sidelines of the Group of 20 nations’ summit in China. A joint statement released by Russia said both ministers “recognized the need to restrain an excessive volatility of the oil market” and agreed to act together “in order to stabilize the oil market.”

Novak and al-Fatih said they would chair the first Russia-Saudi task force on oil and gas in October.

Russia, which is not a member of the oil producing nations’ group OPEC, this year supported calls to freeze production, but the efforts fell through after OPEC member Iran opposed the plan.
This looks like another attempt to manipulate the price of oil without really doing anything concrete beyond jawboning.  It seems to be a monthly occurrence this year, but the oil traders continue to fall for it for a few days at least.

BYW, the US is the world's largest oil producer.  It is probably more accurate to say that Russia and Saudi Arabia are the largest exporters of oil.


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