Saudi Arabia and Russia in 2016 ended years of animosity to join forces to manage the global oil market in an effort to prop up prices. For Moscow, extending the curbs by nine months has an extra incentive, as Russian companies struggle to raise production over the winter months. The deal removed 1.2 million barrels a day of OPEC+ production, helping to send oil prices higher. The verbal agreement between Putin and Prince Salman at the G20 further highlights the importance of the gathering as a key policymaking forum for oil and OPEC watchers. Last year, Putin and Prince Mohammed used the summit in Buenos Aires to give their political backing to extend the OPEC+ deal into the first half of this year.

Source: Taipei Times June 29, 2019 15:56 UTC