Oil prices jumped on the statements of Russia and Saudi Arabia

Russia and Saudi Arabia have advocated for the extension of the Vienna agreement to limit oil production in OPEC and outside the cartel for nine months until the end of March 2018, according to TASS with reference to the joint Ministers of energy of both countries.

Khaled al-Faleh said that Russia and Saudi Arabia agreed to extend the agreement with the previous reduction of 1.8 million barrels per day, specified in the agreement of December 10. In Riyadh, “came to the conclusion that the agreement should be renewed” as “the desired level of oil reserves will not be reached before June,” the Minister said.

According to Alexander Novak, at the upcoming meeting in Vienna on 25 may representatives of the Moscow and Riyadh will recommend to all participants of the Vienna agreement to join him for another nine months. Novak said he did not see any countries reasons not to renew its participation in the transaction.

All Russian oil companies share the position of the energy Ministry, said the Russian Minister.

The Ministers also noted that global oil inventories declined in April and may at an accelerated pace, while the decline in stocks of oil stored in a floating storage totaled more than a third since the beginning of the year.

The action of the current of the agreement reached by OPEC and outside OPEC 10 December, expires in June 2017.

Meeting of Russian Minister Alexander Novak with Saudi counterpart, Minister of energy, industry and mineral resources of Saudi Arabia, Khaled al-Faleh is on Monday, may 15, at the Beijing forum on “One belt and one road”.

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