Saudi Arabia and Russia on Monday agreed to cooperate on a bid to stabilize the struggling energy market, according to media reports. In a statement at the Group of 20 meeting in China, the world's two largest oil producers said they will set up a working group to monitor the oil market and come up with recommendations to promote stability, according to the report. The countries recognize the need to contain the supply glut that has caused oil prices to fall from above $100 two years ago to below $30 earlier this year, according to Interfax. Saudi energy minister Khalid A. Al-Falih and his Russian counterpart Alexander Novak will meet in Algeria in October and in Vienna in November to discuss how to cooperate under the new agreement. Oil prices trimmed earlier sharp gains as the two oil producers failed to meet market expectations they would agree on an output cap. Crude oil was up 2.9% at $45.72 a barrel, while Brent rose 3.5% to $48.49 a barrel.
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.