Energy experts poured scorn on the prospect of Russia and Saudi Arabia collaborating to stabilize the oil market, after the two countries made a joint statement to that effect on Monday.
The two major oil producers announced at the G-20 summit in China that they would form a group to monitor the market and make recommendations on stabilizing prices, according to media reports. Russian Energy Minister Alexander Novak described the moment as “historic” and touted the possibility of the much-discussed-but-never-delivered crude production freeze.
Commodity strategists told CNBC that the statement might push crude prices higher in the short-term, perhaps toward $50 per barrel, but insisted that little in the way of deeper cooperation was likely.
“The running gag of the ‘freeze’ means just nothing,” Eugen Weinberg, head of commodity research at Commerzbank, told CNBC on Monday.
“As to the cooperation between Russia and Saudi Arabia — no chance! It’s clearly just lip service since real cooperation between these competitors is just impossible,” he later added.