- Saudi Arabia and Russia have urged greater stability in global energy markets as conflicts in Iran and Ukraine disrupt oil production.
- OPEC+ expects strong oil demand growth and may approve another production target increase.
Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, and Russia’s Deputy Prime Minister, Alexander Novak, have emphasised the need for stability in global energy markets as ongoing conflicts involving Iran and Ukraine continue to disrupt oil production and exports.
The ministers met on the sidelines of the St. Petersburg International Economic Forum, where senior OPEC+ officials gathered amid mounting challenges facing the global energy sector. Their discussions come at a time when geopolitical tensions, supply disruptions, and uncertainty over future demand are reshaping global oil markets.
Prince Abdulaziz stressed the importance of energy security in maintaining sustainable economic development. He noted that the current environment highlights the need for all available energy resources and stronger efforts to stabilise energy markets.
According to the Saudi minister, the global energy landscape remains highly unpredictable, with rapidly changing conditions creating uncertainty for producers and consumers alike. Consequently, governments and industry stakeholders must adapt to evolving realities while ensuring reliable energy supplies.
Meanwhile, Novak acknowledged that uncertainty surrounding oil demand has increased significantly. However, he maintained that OPEC+ remains capable of responding to changes in the global energy market and mitigating the impact of disruptions.
The alliance currently faces one of its most challenging periods in recent years. Conflicts involving Iran and Ukraine have reduced oil output from two of OPEC+’s largest producers, while supply disruptions across the Middle East have further complicated market conditions. In addition, the United Arab Emirates’ decision to leave OPEC earlier this year has added to the uncertainty surrounding the group’s future dynamics.
The situation has been further exacerbated by disruptions to oil infrastructure and shipping routes in the Gulf region. Market observers have described the resulting supply interruption as one of the most significant in recent history, forcing several Gulf producers to reduce exports and limiting the effectiveness of existing OPEC+ production agreements.
Novak also revealed that Russian oil production has declined since the beginning of the year due to unplanned refinery maintenance. Although he did not provide specific reasons for the maintenance work, the comments represent the first public acknowledgement by a Russian official that the country’s oil output has fallen in recent months. The decline comes amid intensified attacks on Russian energy infrastructure linked to the conflict in Ukraine.
Despite these challenges, OPEC Secretary General Haitham Al Ghais expressed confidence in the long-term outlook for oil demand. He stated that the organisation continues to project strong demand growth and has not revised its forecasts, which remain among the most optimistic in the industry.
Al Ghais also stressed the importance of sustained investment in oil and gas infrastructure to ensure adequate supply in the years ahead. According to him, producers must continue investing well in advance to meet future energy demand and avoid supply shortages.
Saudi Arabia, Russia, and several other OPEC+ members are expected to discuss another increase in production targets when the alliance meets later this week. However, analysts note that ongoing supply disruptions could limit the practical impact of any agreed quota adjustments.