NEW YORK: Saudi Arabia and Russia are working on a historic long-term pact that could extend controls over world crude supplies by major exporters for many years.
Saudi Crown Prince Mohammed bin Salman said that Riyadh and Moscow were considering a deal to greatly extend a short-term alliance on oil curbs that began in January 2017 after a crash in crude prices.
“We are working to shift from a year-to-year agreement to a 10 to 20 year agreement,” the crown prince told Reuters in an interview in New York late on Monday.
“We have agreement on the big picture, but not yet on the detail.”
Russia, not a member of the Organization of the Petroleum Exporting Countries, has worked alongside the 14-member group during previous oil gluts, but a 10 to 20 year deal between the two would be unprecedented.
Top OPEC producer Saudi Arabia recruited Russia and other non-OPEC countries to help drain oversupply when oil prices collapsed to below $30 a barrel in 2016 from over $100 in 2014.
Crude has since recovered to $70 but fast-rising output from US shale producers has capped prices.
“This is all about whether the arrangement is a short-term expedient to deal with this particular crisis in the oil market, or whether it reflects a realignment in world oil,” said oil historian Daniel Yergin, vice chairman at consultancy IHS Markit.
“OPEC countries want to find a way to institutionalize this relationship rather than to have it be a one-shot deal.”
Robert McNally at consultancy Rapidan Energy Group said Riyadh wanted help in breaking the boom-bust cycles that characterize oil markets by capping crude on the upside as well as by helping lift low oil prices.
“History shows that without a long-term, powerful, competent coherent, disciplined swing producer in the oil markets ... you get space-mountain oil prices. Wild volatility of the sort we have seen in the past 10 to 15 years and that Saudi Arabia and Russia do not want to see again,” McNally said.
He said that would require Russia to join Saudi in building spare production capacity to use when prices rise too much.
SAUDI, RUSSIA ALLIANCE “THICKER THAN OIL“
A long-term pact between Moscow and Riyadh would effectively co-opt Russia to the Saudi-led OPEC cartel while strengthening Russia’s hand in the Middle East where the United States has long been the dominant super-power.
News of the potential oil alliance came at a time when the two have been working to cement an economic relationship despite being at odds over the conflict in Syria, where they back opposing sides.
A meeting between the Saudi crown prince and Russian president Vladimir Putin on the sidelines of a G20 meeting in China in September 2016 was instrumental in bringing Russia on board to support OPEC, non-OPEC oil curbs.
Last October, Saudi King Salman became the first Saudi monarch to visit Russia, providing investment and political support for a Russian economy battered by Western sanctions.
“It is a very important strategic development,” Helima Croft at RBC Capital Markets said of a potential 10 to 20 year Saudi-Russia oil collaboration.
“First, the Crown Prince is making the statement, not the oil minister, one more clear sign that he (like Putin) is the final word on his country’s oil policy.
“Second it is one more sign of the major reversal in Saudi-Russia relations. Saudi was a staunch cold war ally of the US Now this Russia-Saudi alliance appears to be thicker than oil and seems to be driven by the personal affinity between Putin and MBS,” said Croft.
ARAMCO IPO LATE 2018, EARLY 2019
The crown prince predicted that world oil demand would not peak until 2040, despite advances in renewable energy technologies and the electric vehicle.
In an attempt to end Saudi Arabia’s reliance on oil, he is leading a push to diversify the Saudi economy away from oil and gas by 2030.
Riyadh plans to raise funds through the flotation of a 5 percent stake in state Saudi oil company Aramco. Time is running out for an initial public offering this year but the crown prince said the IPO could still take place at the end of 2018 or in early 2019, depending on financial market conditions.
Saudi Oil Minister Khalid Al-Falih said last week that documentation was ready but that a venue for the IPO had not yet been decided. The New York stock exchange is still in the running for the IPO, alongside London and Hong Kong, but Falih said there was a risk of a “frivolous” legal action if Aramco were listed in the United States.
OPEC seeks oil alliance with Russia for next 10-20 years - Saudi crown prince
OPEC seeks oil alliance with Russia for next 10-20 years - Saudi crown prince
Related
Indian activists take Palestinian solidarity protest into major New Delhi market
- Protesters gathered at Nehru Place to spark greater awareness of Israel’s deadly war on Gaza
- Many ordinary Indians lack knowledge of atrocities unfolding in Gaza, activists say
NEW DELHI: Indian activists gathered for a Palestinian solidarity rally in one of New Delhi’s busiest commercial areas on Saturday, looking to raise public awareness of — and educate citizens on — Israel’s war crimes against the Palestinian people.
Though support for Palestinian statehood was once an integral part of Indian foreign policy, the Indian government has moved closer to Tel Aviv in recent years and has largely remained quiet since Israel launched its deadly assault on Gaza in October 2023. New Delhi has been supplying Israeli forces with weapons and signed an agreement to send thousands of workers to Israel to replace their Palestinian counterparts.
Indian civil society and students have taken to the streets in solidarity with Palestinians and protest against the government. On Saturday, protesters carried Palestinian flags, “Free Palestine” posters, and placards that read “Stop the Genocide” in Nehru Place, a prominent commercial hub in the Indian capital, as they sought to engage passersby in conversation and spark awareness of Israel’s onslaught on Gaza.
“Coming to a place like this is really an attempt to take the protest (to) ordinary Indians, because it is their hearts and minds that we wish most to access … We want to create consciousness among ordinary Indians,” Harsh Mander, Indian human rights and peace activist, told Arab News.
“There has been a repression of pro-Palestine voices all across Europe and North America, but there has been significant pushback and resistance in other countries. India has not seen that kind of societal pushback to the government’s open complicity with the … Zionist project of the Israeli government,” Mander continued.
Organized by the Indians for Palestine movement, Saturday’s protest moved away from the usual demonstration site of Jantar Mantar in the center of New Delhi. But it was also met with resistance, with some participants becoming the target of harassment from market visitors.
“The choice of Nehru Place as a site was symbolic — an open, public market square frequented by working-class people, students, and office-goers alike. It was meant to reclaim democratic space in a city where protest is now virtually criminalized,” organizers said in a statement. “Despite everything, the message of the gathering remains clear: There are Indians who stand — and will continue to stand — with the people of Palestine.”
Members of Indian civil society are aiming to educate people about the situation in Gaza to counter a lack of awareness, said Pamela Philipose, a journalist and senior fellow at the Indian Council of Social Science Research.
“Let me tell you, almost 90 percent of the people (in Nehru Place) would not have heard about Gaza, and the 10 percent who had would not have known what is happening in Gaza; that people are dying, that people are hungry, that there is a cruel state called Israel that is attacking them … they don’t know any of this,” she told Arab News. ”And this is educating them. A protest is always an education. That’s what we believe.”
Israel has reportedly killed more than 58,700 Palestinians and wounded over 140,000 others since October 2023. The true death toll, though, is feared to be far higher, with research published in The Lancet medical journal in January estimating an underreporting of deaths by 41 percent.
The study adds that the reported death toll does not include deaths caused by starvation, injury and lack of access to health care, caused by the Israeli military’s destruction of most of Gaza’s infrastructure and the blocking of medical and food aid.
“It is extremely important to protest because the atrocities that are going on in Gaza are unprecedented in the history of the world. It is as bad as, if not worse than, what happened in Nazi Germany,” Nandita Narain, a retired professor from Delhi University, told Arab News.
“If we don’t protest today, we have lost our humanity. Humanity can only survive if human beings stand up for each other … India has already suffered colonial rule. We should understand better than everybody else how you must support those who have been subjected to brutal occupation by imperialist powers.”
-ENDS-
Poland is investigating air traffic control system outage, ministry says
- Warsaw’s main airport had earlier reported disruptions to aircraft takeoffs
WARSAW: Polish services were investigating an air traffic management system outage, the Interior Ministry spokesman said on Saturday.
“Officers of the Internal Security Agency are collecting information on this matter, analizing it, and verifying it for potential sabotage,” he added.
Warsaw’s main airport had earlier reported disruptions to aircraft takeoffs, according to state news agency PAP, but later said planes were departing.
“Takeoff and landing operations at Chopin Airport have been fully restored and are now proceeding without disruptions,” Chopin Airport in Warsaw wrote on X.
Pakistan’s finance chief eyes ‘step-change’ US investment after Washington trade talks
- Minister Muhammad Aurangzeb hints at forthcoming ‘leadership-level’ announcement in coming days
- Says both sides have identified investment areas including minerals, mining and artificial intelligence
KARACHI: Pakistan and the United States are exploring a shift in their economic engagement from a trade-focused relationship to one anchored in long-term investment, Finance Minister Muhammad Aurangzeb said in a video message after high-level talks in Washington on Friday.
The meeting between Aurangzeb, US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer followed a virtual discussion last month during which both sides agreed to push negotiations forward “at the earliest.”
The talks come after the US imposed a 29 percent “reciprocal tariff” on Pakistani exports under President Donald Trump’s trade measures announced in April, a move Islamabad said could undercut its fragile, export-led recovery.
“One thing we discussed was that we have to move beyond the immediate trade imperative for it to be brought into the next level and bring in a real step change,” Aurangzeb said after his interaction with US officials.
“So, the investment imperative will come forward, and areas have already been identified in terms of minerals and mining, in terms of AI [artificial intelligence], in terms of digital infrastructure [and] crypto,” he continued. “We feel that this will be a real game changer, God willing, in terms of the relationship and the economic relationship between Pakistan and the United States.”
The Pakistani finance chief said both sides were committed to resolving outstanding trade issues to move “toward the finishing line” and begin investment-related discussions “very quickly.”
He also hinted at forthcoming announcements “at the leadership level,” which he said would reflect all the hard work and efforts that have been put in both by Pakistan and on the US side.
“We begin with trade, and then it will very quickly be followed through with investment discussions between the two countries and real execution of the investment upside,” he said, calling the next phase a “real win-win for Pakistan and the United States.”
Pakistan’s finance ministry has said the US remains its largest trading partner while emphasizing Islamabad’s interest in expanding cooperation beyond textiles to other sectors.
The US is Pakistan’s top export destination, with shipments totaling $5.44 billion in the 2023-24 fiscal year.
From July 2024 to February 2025, exports rose 10 percent from a year earlier, according to official data.
21 dead in Iran as coach overturns: state media
- The accident, the cause of which remains unclear, occurred near Kavar
- Iranian media showed images of a coach lying on its side on a mountain road
TEHRAN: At least 21 people were killed and nearly 30 injured when a coach overturned in southern Iran on Saturday, state media reported.
The accident, the cause of which remains unclear, occurred near Kavar, a town about 1,000 kilometers (600 miles) from the capital, Tehran.
“Unfortunately, 21 deaths have been recorded,” Kavar Hospital director Mohsen Afrasiabi told state television, adding that 29 people were injured.
Iranian media showed images of a coach lying on its side on a mountain road.
Iran has a poor road safety record, with nearly 20,000 deaths from traffic accidents in the 12 months to March, according to official news agency IRNA.
Unidentified drone kills PKK member, injures another near Iraq’s Sulaymaniyah, sources say
- Officials said this is the first attack of its kind in months
BAGHDAD: An unidentified drone attack killed a member of the Kurdistan Workers Party (PKK) and injured another near Iraq’s Sulaymaniyah on Saturday, security sources and local officials said, the first attack of its kind in months.
