Russia, Saudi Arabia agreed to boost oil output: report

Russia and Saudi Arabia made a deal in September to increase their oil output and informed the United States about their plan, Reuters reported Wednesday.

The two nations wanted to boost production as U.S. sanctions on Iran are scheduled to return in November, spurring fear of worldwide price spikes.

But they did not want their action to appear to have been caused by President Trump’s call for the Organization of Petroleum Exporting Countries (OPEC) and Russia to produce more oil.

{mosads}“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,” a source told Reuters

“The Saudi minister told [U.S. Energy Secretary Rick] Perry that Saudi Arabia will raise output if its customers asked for more oil,” another source told the news outlet.

The deal also shows that Saudi Arabia, an OPEC member, and Russia are increasingly willing to cooperate, without the rest of OPEC.

The Energy Department didn’t confirm that Perry was informed about the deal. But Shaylyn Hynes, Perry’s spokeswoman, told Reuters that he has in recent meetings “impressed upon his counterparts that keeping supply up is important for the global economy.”