Putin told an energy conference in Moscow that Russia and Saudi Arabia will “most likely” extend output cuts through 2024, warning that Middle East conflicts could affect oil exports through higher shipping and insurance costs.
“I am sure that the coordination of the actions of the OPEC+ partners will continue,” Putin said at the conference.
“This is important for the predictability of the oil market, and ultimately for the well-being of all mankind,” Putin added, noting that while Russia and Saudi Arabia would likely “continue their cooperation,” “we need to consult with colleagues – our decisions are made by consensus.”
In the final days of September, OPEC+ decided to keep the current oil production cuts in place until the end of the year, extending the 1 million barrels per day supply cuts that began in July until December 31, 2023. Russia also extended its 300,000 barrels per day export cut through the end of the year.
After Brent crude‘s brief flirtation with as high as $97 per barrel in late September, oil prices have pared gains and rebounded briefly with the Hamas rocket attack on Israel over the weekend, which led to a declaration of war by Israel.
On Wednesday, Israeli Prime Minister Benjamin Netanyahu and opposition leader Benny Gantz formed an emergency unity government to deal with the conflict as Israel imposed a siege on the Gaza Strip, cutting off all electricity and power to the 2 million people living there.
This second rally around the potential for a Middle East conflict to threaten supplies was short-lived. By 12:34 p.m. ET on Wednesday, Brent crude was trading at $86.61, down 1.19% for the day. West Texas Intermediate (WTI) was trading at $84.46, down 1.76% for the day.
At the Moscow conference, Putin stood next to Iraqi Prime Minister Mohammed Shia Al-Sudani, who asked the Russian leader to “mediate” in the Israel-Hamas conflict.