Russian-Saudi Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation to convene

Russian Deputy Prime Minister Alexander Novak and Saudi Energy Minister Abdulaziz bin Salman will co-chair a meeting of the Russian-Saudi Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation today.

The meeting follows recent disputes between the two leading oil producers regarding their oil output. Last March, as global demand decreased, the Organization of the Petroleum Exporting Countries (OPEC+) reduced oil production quotas for its members by 1.5 million barrels per day to help stabilize global prices. Russian unwillingness to curb its production beyond the lowered quota helped initiate a price war with Saudi Arabia, which had slashed its own output.

While Moscow and Riyadh ultimately settled the production dispute, their bilateral relations are tenuous. At issue, the two still contest access to the Chinese oil market and are at odds over oil supply management.

Officials will likely use today’s meetings to negotiate new oil production goals considering increasing global demand. Both undoubtedly favor working to increase oil prices to compensate for domestic economic contractions. Yet, to salvage its numerous smaller energy firms and prevent competition with US oil companies, Russian representatives are expected to press for a higher production target than that sought by Saudi officials, stifling medium-term cooperation.