MOSCOW (Reuters) – Saudi Arabia and other members of the OPEC and Russia deserve credit for preventing a jump in oil prices, Energy Secretary Rick Perry told journalists after meeting with his Russian colleague Alexander Novak in Moscow.
US sanctions on the Iranian energy sector, which comes into force in November, have already reduced stocks from Iran to a two-year low because Venezuela and the sudden layoffs in other regions have a fragile balance between supply and demand held, according to the International Energy Agency (IEA).
"The kingdom, the OPEC members who adjust their production to save the world's citizens a rise in oil prices … deserve respect and recognition, and Russia is one of them," Perry said on Thursday.
Perry said the United States, Russia and Saudi Arabia are working together to keep energy prices affordable in the world.
Oil prices fell on Thursday, after a four-month peak, as investors focused on the risk that emerging market crises and trading strains might weaken demand despite tight deliveries.
Novak said earlier this week that Russia could increase production if necessary and warned of market uncertainty due to US sanctions on Iranian oil exports.
OPEC and other producers, including Russia, met in Algiers in September to discuss market conditions.
At the meeting with Perry, Novak said he had proposed to set up a joint investment fund to develop new projects, adding that the Russian direct investment fund could be part of such a fund.
The Russian direct investment fund said in a statement that it supported the idea and would soon propose possible criteria for such a scheme.
Perry and Novak also discussed the Nord Stream 2 gas pipeline project, which will double Russian export capacity across the Baltic. In July, Washington again warned Western companies to invest in the project not to be sanctioned, and said that Moscow used the project to divide Europe.
Perry, who also met with Russian Deputy Prime Minister and Minister of Finance Anton Silwanov, told officials that the Trump government is opposed to Nord Stream2 because Russian gas supplies to Europe will focus on a "one-off risk" of delays and excessive dependence on European customers, "said Shaleen Heinz, American.
The United States is stimulating their gas exports to Europe, including to Poland and Lithuania via liquefied natural gas (LNG). Liquid gas is the highest cost for Europe of Russian gas transported via pipelines, but the United States emphasizes the reliability of US liquefied natural gas.
It happened before the Russian national energy company Gazprom at the height of winter cut gas from Ukraine and Western Europe during price disputes and prohibited customers from selling gas to other countries.
Heinz said that Perry told Russian officials that the Trump government welcomed the energy contest with Russia, but "Moscow can no longer use energy as an economic weapon."
Novak said that North Stream 2 is a & # 39; company & # 39; which Russia hoped would continue and that the United States would act rationally.
Perry did not exclude sanctions on Nord Stream 2, but said that the leaders of the two countries and the energy ministers did not want to reach that point.