DUBAI: Saudi Arabia was not the source of a proposal to cut oil production that Russia was studying, Al-Arabiya television reported on Sunday, quoting an unnamed Saudi source.
But the Kingdom wanted to cooperate with other producers to support the oil market, the source also told the Dubai-based satellite channel.
Russian Energy Minister Alexander Novak said on Thursday that OPEC had proposed output cuts of up to 5 percent to help reduce a glut of crude and prop up sinking prices, in what would be the first such deal globally in over a decade.
It was not clear if Novak was referring to a months-old proposal by OPEC members Venezuela and Algeria, or a new one backed by Saudi Arabia. Sunday’s Arabiya report implied the proposal was not new.
The Saudi source’s comments were in line with remarks made by a senior Gulf OPEC delegate to Reuters on Thursday.
Saudi Arabia has long said it is willing to act to stabilize prices but that the other countries, particularly higher-cost producers, must also reduce their output.
The possibility of supply restraint by producers boosted oil prices to almost $36 a barrel last week from a 12-year low close of $27.
But there is widespread skepticism that a deal will happen, especially since Iran is keen to boost its market share now that sanctions on it have been lifted.
Oil hit $35 a barrel last week, marking a gain of about 25 percent from 12-year lows seen earlier in January, on prospects that a deal between major exporters to cut production could help reduce one of the worst oil gluts in history.
Brent futures settled 85 cents higher at $34.74 a barrel, while US futures rose 40 cents to settle at $33.62.
Saudi Arabia ‘did not make output cut proposal’
