GCC energy ministers and Russian Energy Minister Alexander Novak and Khalid Al-Falih.

GCC energy ministers and Russian Energy Minister Alexander Novak Sunday discussed the current developments in the oil market, including cooperation between the Gulf states and Russia in the energy sector to stabilize crude prices.

The tone for the GCC-Russia energy meeting was set with the 35th meeting of the GCC ministers of oil and energy held ahead of it and chaired by Energy, Industry and Mineral Resources Minister Khalid Al-Falih.

The oil and energy ministers from oil-producing GCCstates met at the secretariat in Riyadh and discussed various ways and means of ensuring oil market stability in the wake of OPEC’s efforts to seek Russian cooperation in limiting output to prop up prices, said a GCC spokesman.

He also said that the meeting reviewed major issues to foster cooperation among Gulf countries in the oil and energy sector.

In his opening remarks signifying the crucial GCC role, Al-Falih said: “It is no secret as everyone knows the importance and weight of the crucial role of the GCC economically, especially in the petroleum market, where our production totals about 18 million barrels a day and represents more than 20 percent of the global output, so we have a large and influential role in the stability of the market.”

Al-Falih added: “We are always doing that responsible role in coordination and close cooperation among ourselves and with the rest of the oil producing countries, both inside the OPEC or outside it in the interests of our countries and people in particular, and for the oil market and the global economy in general.”

He pointed out that the oil market is being rebalanced as low prices are putting pressure on development plans in oil producing countries and stressed that the importance of the meeting stems from being held at an important stage in the oil market from which “we are still suffering because of its fluctuations.”

It resulted in pressure on the budgets of all the GCC countries and the stability of spending on ambitious development plans, he said.

The minister, however, maintained that the petroleum markets recently began moving toward balance.

“We have started within OPEC member countries and in cooperation with non-OPEC oil producing countries, intensive consultations to take appropriate procedures to restore balance to it in order to accelerate the process of recovery in the market.”

Commenting on GCC-Russia energy meeting, he said: “Russia is one of the largest oil producing and exporting members and one of the parties affecting the oil market balance. The visit of Russian Energy Minister Alexander Novak to the Kingdom gave us an appropriate opportunity to review oil market developments in an effort to stabilize them through cooperation between OPEC countries and countries outside it.”

Al-Falih said he invited the Russian minister to the meeting and he welcomed the invitation as a sign of goodwill to continue cooperation with oil producing countries and oil exporting countries for the oil market stability.

He welcomed it as a clear evidence of the sincere desire to continue cooperation and coordination between oil producing and exporting countries in an effort to further stabilize the market, said Al-Falih.

Addressing a press conference that followed the joint meeting, the two leaders said they discussed the current situation in the oil market, the agenda for the Vienna meeting on the issue and the upcoming OPEC meeting in November.

“The current cycle of falling crude prices is close to an end as market fundamentals improve now,” they stated during the joint press conference.

“We are optimistic that oil prices will continue to improve in the future,” said Al-Falih.

Oil prices are currently hovering at around $50 per barrel after hitting a 12-year low of around $26 in February, down from a peak of more than $100 in mid-2014.

Novak, who arrived in the Kingdom on a two-day visit Saturday, is also scheduled to meet OPEC representatives in Vienna on Monday for key talks.

During talks in Riyadh, he was expected to discuss bilateral relations as well as cooperation with the OPEC.

Qatar’s Energy Minister Mohammed Al-Sada, whose country holds the rotating presidency of the OPEC, said the “difficult phase is over.”

He said: “Although the market is heading to being balanced, it needs our joint effort, and we all agreed that we need to take measures to bring back this balance.”

Novak said he and his Gulf counterparts had discussed ways to “develop the best mechanism to solve the issue of stabilization.”

“We have reached an unprecedented level in our relations and cooperation” with Saudi Arabia, he said in Riyadh, adding that he agreed with Al-Falih “to continue to work and remain in continuous contact to achieve… concrete mechanisms.”

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