Saudi Arabia and Russia are "very, very close" to reaching an agreement on how to react to the low oil prices, Kirill Dmitriev, chief executive at Russia's sovereign wealth fund, the Russian Direct Investment Fund (RDIF), told CNBC on Monday. "I think the whole market understands that this deal is important and it will bring lots of stability, so much important stability to the market, and we are very close," Dmitriev told CNBC on the day on which the former allies were set to hold a video meeting with other major producers, including U.S. representatives, to try to hammer out an agreement for a global collective cut of 10 million bpd and even more. First, Russia's Energy Minister Alexander Novak and President Vladimir Putin said on Friday that Saudi Arabia withdrew from the OPEC+ agreement, announcing "significant additional discounts on their oil, as well as plans for a sharp increase in production," as per the Kremlin's English translation of a meeting between Putin and Novak on the global energy markets. "The key partners in balancing the market should be producers like the United States," Novak said, after noting that "Unfortunately, our partners from Saudi Arabia did not agree to extend the current deal on the current conditions. "His Royal Highness noted that the Kingdom has exerted great efforts with OPEC+ countries to take action to prevent a glut in the oil market resulting from a decline in the global economic growth.
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