MOSCOW—Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman agreed during a telephone call on further “close coordination” on oil output restrictions, the Kremlin said on May 27, just two weeks before an online oil conference.
It said they also both noted the importance of joint efforts aimed at reaching the agreements within the OPEC+ group in April on oil production curbs.
“It was agreed upon further close cooperation on this topic via the energy ministries,” the Kremlin said in a statement.
OPEC and other large oil producers led by Russia agreed last month to cut their combined oil output by almost 10 MMbbl/d in May and June to tackle the sluggish oil market, which has been hit by overproduction and the coronavirus pandemic.
The OPEC+ group is due to hold an online conference in the second week of June to discuss their further policy.
According to the current deal, the output curbs should be eased starting in July. Various sources have said there are discussions on whether to continue with the current level of production cuts from July onward.
Despite this week’s decline, the total rig count was up 237, or 94%, over this time last year, according to Baker Hughes data going back to 1940.
A new Walker Ridge discovery in the U.S. Gulf by Chevron plus two more Wolfcamp Shale producers from CrownQuest’s Avogadro prospect in the Permian Basin top this week’s oil and gas drilling activity highlights from around the world.
As public E&Ps stay disciplined and privates take an ‘aggressive approach’ across the U.S. shale patch, analysts see continued efficiency gains and rising costs from oilfield service companies.