On June 5, Prince Abdulaziz bin Salman, Saudi Arabia's Energy Minister, met with his Russian counterpart in St. Petersburg as part of the St. Petersburg International Economic Forum. He called for stability in global energy markets as the OPEC+ alliance faces disruptions from conflicts in Iran and Ukraine, which have sent oil prices soaring.
OPEC+ is grappling with unprecedented challenges, including sharp cuts in export production and the departure of the United Arab Emirates (UAE)—an oil powerhouse for nearly 60 years—from the organization last April.
Speaking at the forum, the Saudi minister emphasized: “The current situation shows that the world needs every molecule of energy and every form of stability for this energy, because without energy security, you lose sustainability. There are too many variables, too many unknowns. There are things you thought were reality, but when you wake up the next morning, reality is no longer reality.”
Russian Deputy Prime Minister Alexander Novak, his counterpart in the energy sector, echoed this view. After the meeting, Novak stated: “We concluded that no one really knows what will happen with demand at this moment. In other words, uncertainty has increased.” He also stressed that OPEC+ could offset global changes in the energy sector, but estimates from a few years ago need a fundamental reassessment.
Novak acknowledged that Russia's oil output has declined since the start of the year, attributing it to unscheduled maintenance at refineries. This marks the first time a Russian official has clearly confirmed the production drop, according to Reuters. Novak did not specify the reason for the maintenance, but Ukraine has intensified attacks on Russian refineries in recent months.
The closure of the Strait of Hormuz due to the U.S.-Israel conflict with Iran, along with mandatory oil export cuts by Gulf OPEC members and former member UAE, have made agreements to raise production quotas largely theoretical.
According to Reuters, Saudi Arabia, Russia, and five other OPEC+ members may agree to further increase production quotas for July in a meeting next Sunday, based on unnamed sources.
