Russia and Saudi Arabia agreed on oil-pricing

Baku. 22 November. REPORT.AZ/ "Official Moscow and Riyadh both want to see oil prices react to market forces. But not to geopolitical muscle flexing." Report informs, Russian Foreign Minister Sergey Lavrov stated on Friday after the meeting with Saudi Arabia Foreign Minister Prince Saud al-Faisal in Moscow. "Saudi Arabia and Russia believe that pricing should be market-oriented and let supply and demand play the decisive role. We and our Saudi partners are against shifting markets as a result of political or geopolitical schemes."

The foreign minister’s comments come ahead of the OPEC meeting on November 27 in Vienna, Austria, which may see a cut in production to boost oil prices. Besides 12 member countries, non-member states, as well as Russian Federation and Venezuela representatives and officials will take part at the meeting.

According to fund market datas, Brent crude rose by 2.03 percent to $80.94 on Friday, the first time it has crossed the $80 threshold since November 14.

Overall, oil prices have dropped drastically since Brent topped out at $115 per barrel in June. By mid-October prices had sunk to $84, and on November 13 hit a new nadir at $77.50 per barrel.

Oil exporting countries base their budgets on oil prices. Iran needs a price at $140 per barrel to balance its budget, whereas Saudi Arabia needs a price of $90.70 per barrel, Qatar $77.60 per barrel, and the United Arab Emirates $73.30 per barrel.

Tumbling oil prices have hit the Russian currency hard; in November the ruble lost nearly 45 percent of its value before recovering slightly. On Friday at 15:30 MSK the ruble improved to 45.52 against the dollar, and 56.59 against the euro.