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.
The U.S. has become the world's largest oil producer, boosted by output from shale formations, with production of nearly 11 million barrels in 2018, which broke the country's annual record set in 1970.
Refiners have scooped up the Heavy Louisiana Sweet (HLS) at higher prices than Light Louisiana Sweet (LLS), the U.S. coastal benchmark that last traded $7.15 over WTI, traders said.
The Lake Charles LNG project, led by Energy Transfer LP and Shell US LNG LLC, has issued an Invitation to Tender (ITT) on May 3 to U.S. and international consortia to bid for the engineering, procurement and construction (EPC) contract to convert Energy Transfer’s existing LNG import facility in Lake Charles, Louisiana to a proposed large-scale LNG export project.