Putin Brokers OPEC deal

On Thursday, December 1st, President Putin played perhaps the most instrumental role in brokering a deal between long-time rivals, Iran and Saudi Arabia, in hopes to seek cooperation in cutting oil production. This deal, if it continues to be successful, it will be the first joint oil-cut deal between OPEC and Russia in 15 years.

Discussion between Saudi Arabia and Russia began in September, when Putin and Saudi Prince Mohammed met during the G20 gathering in China. While Russia and Saudi Arabia have significant differences politically, they were able to cooperate to help the world oil market, which had decreased oil prices by half since 2014, weakening Russian and Saudi Arabian government revenues. For both, oil is a major export, and it the epicenter of their economies. However, an agreement between Saudi Arabia and Russia was not enough, which is why Putin’s involvement in brokering a deal with Saudi Arabia and Iran was so significant. OPEC seems hopeful that this deal will last, contributing to a boost in Putin’s foreign relation strategy.