Russian President Vladimir Putin played a key role in achieving agreement between the oil exporters to reduce production, reported Reuters citing a number of sources in OPEC and outside the organization.
The news Agency said that Putin has made the resolution of disagreements between Saudi Arabia and Iran, the result of which was concluded in the first 15 years of the deal involving the largest exporters of “black gold”. Previously, Saudi Arabia has insisted that Iran must reduce oil production, as well as other exporters. In Iran after the lifting of Western sanctions insisted on production capacity.
According to the Agency, the successful reconciliation of the positions of Riyadh and Tehran demonstrates the growing influence of Russia in the middle East amid the ongoing military operation in Syria.
September meeting and the November decision
According to the Agency, in September during the summit of “twenty” in China, President Putin met with Deputy crown Prince of Saudi Arabia Mohammed bin Salman, during which agreement was reached on cooperation of the two countries to eliminate the excess of oil on the world market that caused the fall in energy prices.
At a meeting in late September in Algeria of the OPEC countries reached a preliminary agreement to freeze oil production to stabilize prices for raw materials. After that, between the cartel members began talks about the possibility of reducing oil production and its volumes for each country. The decision was supposed to be adopted at the summit of OPEC in Vienna on November 30, reminds TASS.
Putin came to the conclusion that Saudi Arabia is ready to take on the bulk of the reduction of oil production by OPEC countries, provided that it will not look like a concession to Iran and that Tehran will not announce the agreement of his victory.
The organization of countries – exporters of oil (OPEC) at the end of the talks on Wednesday took the decision a period of six months to cut oil production at 1.164 million barrels per day from the level of production cartel in October 2016. Most of all it will cut production Saudi Arabia by 486 thousand barrels a day. As for Iran, the agreement allows him to not reduce, but rather increase oil production by 90 thousand barrels per day. The representatives of Iran did not make any public statements about what the results of the summit of OPEC can be interpreted as a victory for Tehran.