Saudi Arabia and Russia agreed to set up a task force to review oil market fundamentals and to recommend measures and actions that will secure oil market stability, according to a joint statement issued on the sidelines of the G20 Summit on Monday. Saudi Arabia has signed an agreement to seek cooperation in the oil market with Russia, Saudi Minister of Energy, Industry and Mineral Resources Khalid Al-Falih said at a news conference at the G20 in the eastern Chinese city of Hangzhou. Russian Energy Minister Alexander Novak said at the news conference that cooperation with Saudi Arabia includes ways to stabilize global oil market. "The ministers noted the particular importance of constructive dialogue and close cooperation between the largest oil-producing countries with the goal of supporting the stability of the oil market and ensuring a stable level of investment in the long term," the energy ministers from the two sides said. "To this end the ministers agreed to act together or in cooperation with other oil producers," the statement said, adding they had agreed to set up a "joint monitoring group" to offer recommendations aimed at preventing price fluctuations. Al-Falih told Al-Arabiya after signing the agreement that there was currently no need to limit oil output. "There is no need now to freeze production," he said. "It is among the preferred options, but it is not necessary today. The market is improving day by day." Al-Falih described Saudi Arabia's agreement with Russia as "important" and said the two producers would continue to cooperate. The countries discussed several options to stabilize oil markets including a joint freeze on output, he said. Russia's Energy Minister Alexander Novak described the announcement as marking a "new era" in cooperation between Russia and Saudi Arabia and insisted that it would have a "critical significance" for oil markets, news agency Interfax reported. Novak and Al-Fatih said they would chair the first Russia-Saudi task force on oil and gas in October. The price of oil jumped on the countries' statement. The US contract rose 2.2 percent, or 99 cents, to $45.43 a barrel in electronic trading on the New York Mercantile Exchange. — Agencies
