Global oil production to be hiked following Saudi-Russian agreement

Leading OPEC members Russia and Saudi Arabia will ask the cartel to boost oil production by 1.5 million barrels a day, marking an end to cuts that have seen prices recover after their collapse in 2014.

The hike will begin in the third quarter of 2018, Russian Energy Minister Alexander Novak said on Saturday, and follows a production shortfall in Iran and Venezuela.

OPEC and Russia cut supplies in 2016, in order to push increase prices when a global crude production glut saw oil at lows of $30 a barrel.

Novak said Russia and Saudi Arabia agree to "propose increasing production in the third quarter by 1.5 (million bpd)", according to RIA Novosti news agency.

"We are only proposing this for the third quarter. In September we will review the situation in the market and decide the future course."
Russian President Vladimir Putin and Novak met Saudi Crown Prince Mohammed bin Salman before the opening World Cup match in Moscow.

A meeting before the World Cup clash between Russia and Saudi Arabia saw the two leaders discuss a common oil strategy.

Oil prices have risen considerably since the OPEC agreement but there are fears that renewed US sanctions on Iran and a fall in output in crisis-hit Venezuela could disrupt supply.

Relations have warmed under Putin and the Saudi crown prince, with the two countries working on common production strategies to combat low oil prices and geopolitical challenges.