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Ties with Saudi Arabia are ‘constructive’, says Kremlin

Saudi Arabia Kremlin ties Reuters/Heinz Peter-Bader
Global oil demand is forecast to grow between one and two million bpd

The Kremlin has said relations with Saudi Arabia were constructive and based on mutual understanding and respect ahead of an Opec+ meeting.

Asked about relations with Saudi Arabia ahead of the meeting, Kremlin spokesman Dmitry Peskov said they were “constructive, based on mutual understanding, mutual respect, mutual trust, and very work-like”.

Opec+, which groups the Organisation of the Petroleum Exporting Countries with Russia and other allies, surprised the market on April 2 with further output cuts that pushed up the price of oil.

Opec+ pumps around 40 percent of the world’s crude and supplies around 60 percent of the oil export market, meaning its policy decisions can have a major price impact.

Russia is the world’s second largest oil exporter after Saudi Arabia.

Earlier ship tracking data showed that Saudi Arabia was maximising refining profits by importing unprecedented amounts of cheap Russian diesel. In turn, it is shipping record volumes to Singapore, where the fuel can achieve higher margins.