Russian President Vladimir Putin is set to visit the United Arab Emirates and Saudi Arabia on Wednesday, followed by talks with Iran’s president in Russia. Kremlin spokesman Dmitry Peskov mentioned that discussions on coordinated actions in global oil markets are part of ongoing talks within the OPEC+ group. This visit follows OPEC+’s recent agreement on voluntary supply cuts of around 2.2 million barrels per day, met with skepticism in the oil market.
Putin’s travel plans were revealed by online news outlet SHOT, quoting Kremlin aide Yury Ushakov. In Saudi Arabia, Putin is expected to negotiate primarily with Crown Prince Mohammed bin Salman (MbS). Putin and MbS played crucial roles in forming the OPEC+ group in 2016 to stabilize energy markets, essential for both countries’ budgets.
Dubai has become a vital trading hub for Russian oil companies, particularly for Lukoil. European sanctions on Moscow prompted Lukoil to move part of its operations to Dubai. Putin, who has limited international travel in recent years, last visited China in October.
OPEC+ agreed to voluntary supply cuts of 2.2 million barrels per day for Q1 2024, with Saudi Arabia continuing its voluntary cut. The lukewarm market response reflects skepticism about the full implementation of these voluntary cuts. Oil prices initially fell after the announcement, with Brent crude futures showing a modest rise on Tuesday.
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