Saudi Arabia and Russia agreed to work together to ensure oil market stability even as leaders from the world’s two biggest crude producers stopped short of offering detailed proposals.

Oil-market stability is impossible without Saudi-Russian cooperation, the kingdom’s influential Deputy Crown Prince Mohammed bin Salman said after meeting on Sunday with President Vladimir Putin in Hangzhou, China. Prince Mohammed made his comments three days after Putin said he’d like OPEC and Russia to agree to freeze crude supply to steady the market.
oil market

“Our countries are the two biggest oil producers, that’s why there can’t be a stable policy in the sphere of oil without the participation of Russia and Saudi Arabia,” said Prince Mohammed, a son of the Saudi king. Putin said it is important for the two countries to “maintain a permanent dialogue.”

Crude gained about 6 percent since the Organization of Petroleum Exporting Countries said in August that it will hold talks in Algiers later this month. Producers have been discussing proposals to limit output after a glut cut prices by more than half from their 2014 peak.

OPEC adopted a Saudi-led policy allowing members to raise output to protect market share from higher-cost producers in 2014. Group production rose to a record 33.69 million barrels a day in August, just under a third of global demand, a Bloomberg survey showed last week.

“Russia and Saudi Arabia talking constructively about a production freeze is going to be bullish for the market, whether or not they actually follow through with it,” Edward Bell, a commodities analyst at Dubai lender Emirates NBD PJSC, said Sunday by phone from Dubai.

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