KSA: Saudi Arabia and Russia upbeat on Opec+ – Gulf Digital News

KSA: Saudi Arabia and Russia upbeat on Opec+ – Gulf Digital News

Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman “gave a positive assessment” of joint work in the Opec+ format during a phone call, the Kremlin said in a statement yesterday.

Opec on April 12 cut its forecast for growth in world oil demand in 2022 citing the impact of Russia’s invasion of Ukraine, rising inflation as crude prices soar and the resurgence of the omicron coronavirus variant in China.

In a monthly report, the Organisation of the Petroleum Exporting Countries (Opec) said world demand would rise by 3.67 million barrels per day (bpd) in 2022, down 480,000 bpd from its previous forecast.

Russia’s invasion of Ukraine in February sent oil prices soaring above $139 a barrel, the highest since 2008, worsening inflationary pressures.

Meanwhile, the US Interior Department said it’s moving forward with the first onshore sales of public oil and gas drilling leases under President Joe Biden, but will sharply increase royalty rates for companies as federal officials

weigh efforts to fight climate change against pressure to bring down high gas prices.

The royalty rate for new leases will increase to 18.75 per cent from 12.5pc.

That’s a 50pc jump and marks the first increase to royalties for the federal government since the