Putin on phone with Saudis ahead of OPEC+ committee meeting on Wednesday

Oil prices are down to start week, adding to year-to-date losses

Russian President Vladamir Putin met with Saudi Crown Prince Mohammed bin Salman by phone to discuss a collaboration on stabilizing the global oil market, the Kremlin said in a statement.

The two leaders talked about a bilateral cooperation in the political, trade, economic and energy sectors, Bloomberg reported.

OPEC+, which Russia is a member, meets this week. The global members will seek coordination and stability on oil prices and policies. West Texas Intermediate and Brent crude were down more than 1% at midday Monday, ET.

Oil is under pressure on indications of strong Russian supply despite a European Union ban and G7 price cap imposed over its invasion of Ukraine. The European Union has banned imports of Russian oil products since Feb. 5, 

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Russian President Vladimir Putin presents a gift made of mammoth tusk to Saudi Arabia's Crown Prince Mohammed bin Salman as head of the Chechen Republic Ramzan Kadyrov looks on in Riyadh

Russian President Vladimir Putin presents a gift made of mammoth tusk to Saudi Arabia's Crown Prince Mohammed bin Salman as head of the Chechen Republic Ramzan Kadyrov looks on in Riyadh, Saudi Arabia, Oct. 14, 2019. (Sputnik/Alexei Nikolsky/Kremlin via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY./File Photo / Reuters Photos)

Edward Moya, a senior market analyst at OANDA in New York, told FOX Business, "OPEC has been reducing output, and this meeting is expected to deliver no change."

"The committee wants to see China's recovery and the impact of sanctions on Russian supplies," he added. "President Putin's call with the Crown Prince could suggest the Saudis are making sure Russia is on board with keeping output steady and seeing if they anticipate they will be able to make their quotas."

Hopes of a rise in Chinese demand have boosted oil in 2023. The world's biggest crude importer pledged over the weekend to promote a consumption recovery that would support demand.

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Russia oil field in the snow

General view shows an oil treatment plant in the Yarakta Oil Field, owned by Irkutsk Oil Company (INK), in Irkutsk Region, Russia, Mar. 10, 2019. (Reuters/Vasily Fedosenko / Reuters Photos)

Energy companies are also lower halfway through the session with Chevron, Hess, Exxon Mobile, and Occidental Petroleum all well beneath the redline. 

Ticker Security Last Change Change %
CVX CHEVRON CORP. 157.75 +0.81 +0.52%
XOM EXXON MOBIL CORP. 113.44 -0.13 -0.11%
HES HESS CORP. 151.39 +1.11 +0.74%
OXY OCCIDENTAL PETROLEUM CORP. 61.95 -0.01 -0.02%

The Kremlin has yet to respond to FOX Business inquiries.

Reuters contributed to this report.

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