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Russia, Saudi struck private deal in Sept to raise oil output, informed US

US President Donald Trump has blamed the OPEC nations for surge in oil prices

Reuters 

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Representative Image

and struck a private deal in September to raise to cool rising prices and informed the United States before a meeting in Algiers with other producers, four sources familiar with the plan said. Perry told of plans before Algiers talks By Olesya Astakhova and Rania El Gamal.

US President has blamed the Organization of the Petroleum Exporting Countries (OPEC) for high crude prices and called on it to boost output to bring down fuel costs before the US congressional elections on November 6.

The sources said Saudi Energy Minister Khalid al-Falih and his Russian counterpart Alexander Novak agreed during a series of meetings to lift output from September through December as crude headed towards $80 a barrel. It is now over $85.

"The Russians and the Saudis agreed to add barrels to the market quietly with a view not to look like they are acting on Trump's order to pump more," one source said.

"The Saudi minister told (US Energy Secretary Rick) Perry that will raise output if its customers asked for more oil," another source said.

First Published: Wed, October 03 2018. 15:56 IST
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