Russia and Saudi Arabia have struck a deal to raise oil output from September through December to cool rising prices, according to Reuters.
The deal, struck in private in September, was then shared with the United States before a meeting in Algiers with other producers, according to four sources familiar with the plan cited by Reuters. The deal “underlines how Russia and Saudi Arabia are increasingly deciding oil output policies bilaterally, before consulting with the rest of OPEC.”
The report comes amid pressure from the United States and President Donald Trump on Saudi Arabia to increase production to tame prices. Rising gas prices in the United States could become an issue for voters as Americans head to the polls this fall.
Saudi Arabia today announced that it will invest $20 billion in the next few years to maintain and possibly expand its spare oil production capacity, Saudi Energy Minister Khalid Al-Falih said.
According to a separate Reuters report, Al-Falih said the country “had not decided yet whether it wanted to take its capacity up to 13 million bpd or keep it at current levels.”