Moscow – The Kremlin declared on Monday that the reductions in oil production by Saudi Arabia, Russia,o and other key producers that have driven up prices are “in the interests” of the world markets.
The unexpected action on Sunday occurred as oil prices began to decline after surging after the start of the conflict in Ukraine last year.
“A good level of world oil prices is in the interests of the global energy markets,” Kremlin spokesman Dmitry Peskov told reporters. It’s up to those other nations to decide whether or not they approve of this, he continued.
The United States, which has already criticised Saudi Arabia and Russia-led OPEC+ for a previous production cut last year, may be incensed by the move.
Riyadh and other significant oil producers declared a production reduction of more than one million barrels per day on Sunday, describing it as a “precautionary” action meant to stabilise the market.
Experts believe that Russia’s decision to extend its own voluntary output cut of 500,000 barrels per day until the end of the year will increase prices and offset the impact of international sanctions.
Alexander Novak, the deputy prime minister of Russia in charge of energy, claimed that the “high volatility” and “uncertainty” on the oil market warranted the action.
He stated in a statement that “the predictability of the global oil market is a key element to ensure energy security.” On Monday, the price of oil surged, with the two major crude contracts rising by about 8% at one time.
