Russian President Vladimir Putin plans to meet Saudi Crown Prince Mohammed bin Salman at the opening of the FIFA World Cup in Russia. They plan to discuss oil, amongst other things.
The world's top crude producers are key partners in the OPEC+ deal, which is designed to prop up oil prices by cutting global output.
However, oil dipped on Wednesday amid speculation that the deal may be revised following reports that both Russia and Saudi Arabia are ramping up production. Brent crude was trading at $75.83 per barrel, while the US WTI was valued at $66.31.
Russian presidential spokesman Dmitry Peskov said the deal won’t be abandoned, though. "The withdrawal from OPEC + will not be discussed," he said, confirming that Putin's meeting with the crown prince of Saudi Arabia will be held on Thursday.
The Organization of the Petroleum Exporting Countries and some non-OPEC producers, led by Russia, agreed to cut output in 2017 to reduce a supply overhang, which has led to a 60 percent spike in oil prices over the past year.
“The prospect of easing supply curbs from OPEC-led producers continues to be reflected in oil’s overall depressed price,” Lukman Otunuga, analyst at brokerage FXTM said as quoted by Reuters.
Rising oil output by the world's third biggest producer, the US, is also affecting prices. American oil production has jumped by almost a third in the last two years to a record 10.8 million barrels per day.
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