King's 'Historic' Visit to Moscow to Be Successful - Saudi Foreign Ministry

Trevor Jackson
October 5, 2017

Saudi King Salman reviews the honor guards upon his arrival at Moscow's Government Vnukovo airport, Russia, Wednesday, Oct. 4, 2017.

King Salman will travel to Moscow Thursday, a trip marking the first visit of a Saudi reigning monarch to Russian Federation.

While Russia and Saudi Arabia are now allies on the global oil market, they are on the opposite sides in the Syria conflict.

"King Salman doesn't do courtesy calls".

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Al-Rasi described the visit as important in its content and timing for being King Salman's first trip to Russian Federation in the historic and long-term relations between both countries.

Russian Federation and Saudi Arabia were key to the agreement in 2017 to cut production by around 1.8 million barrels per day for six months and subsequently extend it through March 2018. It was subsequently extended through March 2018. That has brought a measure of stability to markets that have seen a three-year slump in oil prices. As of Tuesday midday, benchmark Brent crude was trading at $56.04 a barrel and West Texas Intermediate (WTI) at $50.51 with concerns of an over-supply still at the forefront of investors' minds. The forum will be officially opened by Russia's Minister of Energy Alexander Novak. The meeting comes before next month's OPEC session that will review the cuts in crude production agreed-upon by petroleum-producing nations including Russian Federation and Saudi Arabia. The price of the Brent oil dropped from over Dollars 100 in early 2014 to a little more than USD 40 at the end of a year ago and opened this Monday (2) costing around USD 57.

Miswin Mahesh, oil analyst at Energy Aspects, agreed that the oil giants could be more cautious in terms of announcing a further extension to the reduction in oil output. "In particular, oil and gas services, petrochemicals, renewables, advanced materials and other advanced technologies, and cutting-edge basic and applied research are all promising areas for bilateral cooperation", Saudi Aramco CEO Amin Nasser said ahead of the visit.

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