Saudi King Salman makes historic visit to Russian Federation

Posted October 05, 2017

"The visit crowns the Saudi-Russian relations following the trips made by Crown Prince Muhammad Bin Salman, deputy premier, minister of Defense and chairman of the Council of Economic and Development Affairs to Russia in the last two years", he said.

King Salman will travel to Moscow Thursday, a trip marking the first visit of a Saudi reigning monarch to Russian Federation.

"We are awaiting the king's visit on Thursday", President Vladimir Putin's foreign policy aide, Yury Ushakov, was quoted by the state TASS news agency as saying.

Saudi Arabia has its economy based on the oil sector.

Chris Weafer, senior partner at Macro Advisory Partners, told CNBC on Tuesday that King Salman's attendance at the meeting was "very significant".

General Authority for Statistics figures show that gross domestic product shrank by 2.3 percent in the second quarter compared with the first three months of 2017, mainly over low oil prices and less production.

Oil prices have failed to see the gains hoped from those cuts, however, with USA shale oil producers coming back online and demand still failing to keep up with supply.

Al-Rasi described the visit as important in its content and timing for being King Salman's first trip to Russian Federation in the historic and long-term relations between both countries.

Ministers from the Organization of Petroleum Exporting Countries attending a conference in Moscow may take up export monitoring, Russia's energy minister said. A thaw between Moscow and Riyadh helped reach November's deal in which OPEC and 10 other oil-producing countries, including Russian Federation, agreed to cut their production in a bid to combat a supply glut. "With the rise in prices, we expect the U.S.to continue pumping higher output, thus impacting market rebalancing".

The reductions will be on the same terms as those agreed in November.

The Kremlin said ahead of the visit that Salman and Putin will discuss "the situation in the Middle East and North Africa, especially focusing conflict situations in the region".