The details of the agreement, however, reveal its dangers for Russia. Plus get access to seven years of our archives. The G-20 in 2016 in Hangzhou, China, also proved pivotal for the oil market, with Putin and the crown prince forging a rapprochement between the world’s top two oil exporters. Speaking at the Group of 20 summit in Japan, the Russian president said the extension of output cuts -- which expire at the end of June -- could be for six or nine months. That reflects a somber outlook for oil supply and demand next year due to a combination of slowing global economic growth and rising U.S. shale output. Sen. Kevin Cramer, R-N.D., has assembled a coalition of previously pro-Saudi Republicans to pressure Riyadh by threatening to end US military support for the kingdom. OPEC+ will meet in the Austrian capital on July 1-2. Russian President Vladimir Putin struck a deal with Saudi Crown Prince Mohammed Bin Salman to extend the OPEC+ agreement at current production levels for the rest of this year and potentially into early 2020. Riyadh and Moscow ended years of animosity in 2016, joining forces to manage the global oil market in an effort to prop up prices. Earlier, the Saudi oil minister said in a tweet that the Russian-Saudi deal to extend the production cuts would "help reduce global stockpiles" of crude oil "and thus balance the market. Saudi Arabia and Russia don’t agree on how to approach faltering oil demand. “We have agreed: we will continue our agreements,” Putin said in Osaka. Russian President Vladimir Putin struck a deal with Saudi Crown Prince Mohammed Bin Salman to extend the OPEC+ agreement at current production levels for the rest of … What’s next: Inhofe also noted that he spoke with the Saudi ambassador to the United States today, Princess Reema bint Bandar. The alliance between the Organization of Petroleum Exporting Countries and its partners has had a mixed track record of supporting oil prices, in part because some members have at times overproduced. A long extension could also be an acknowledgment by Russia of the impact of the massive Druzhba pipeline outage on its production capacity. There’s just one problem — Russia is denying both the agreement and the fact that a call between Putin and the crown prince even took place. We’ve already seen where such a standoff can lead. Senate Armed Services Committee Chairman James Inhofe, R-Okla., and other Iran hawks have vowed to stop opposing anti-Saudi legislation on Capitol Hill targeting the kingdom over the Yemen war and the murder of journalist Jamal Khashoggi. Al-Falih warned the extension of the production cuts was needed as oil demand growth had “softened a little bit,” but said there wasn’t a need to deepen them. "But we have to talk to other ministers," he cautioned on the early hours of Sunday in the Austrian capital. Photo by Sputnik/Alexei Nikolsky/Kremlin via REUTERS. Before it's here, it's on the Bloomberg Terminal. Why it matters: Trump has come under significant pressure from Republican senators in oil-rich states that have been severely impacted by the Russian-Saudi price war, resulting in significant layoffs exacerbated by the coronavirus pandemic. Photographer: Yuri Kadobnov/Pool/AFP via Getty Images. In the past, Iran has put up fierce fights to the position of Riyadh. Know more: It’s hard to understate how much trouble the price war could spell for the US-Saudi security partnership. A few days later, with clear instructions from their leaders, the respective oil ministers met and agreed on the details of cuts. On Friday, Brent futures for September closed at $64.74. “The president’s leadership here preserves our additional tools, including 232 [tariff] investigations, in the event that Saudi Arabia and Russia don’t adhere to the agreement,” Inhofe said in a statement. Stocks Climb to Five-Week Highs; Bonds Gain: Markets Wrap, Goldman’s Abby Joseph Cohen Warns Over ‘Considerable’ Market Downside, China Joins WHO Effort; Indonesia Cases Spike: Virus Update, The 50 Richest Americans Are Worth as Much as the Poorest 165 Million, U.S. Jobless Claims Show Scant Improvement at 840,000 Last Week. “In any event we will support the continuation of agreements, both Russia and Saudi Arabia, in the volumes previously agreed.”. U.S., Saudi Arabia, Russia Lead Pact for Record Cuts in Oil Output As part of agreement, 23 countries commit to withholding 9.7 million barrels a day from markets Since Russia and Saudi Arabia came together to manage the market in late 2016, benchmark Brent crude has oscillated between $45 and $85 a barrel. This year the OPEC+ alliance has cut production by more than the pledged 1.2 million barrels a day as U.S. sanctions on Iran and Venezuela slashed output from both countries. Adam Lucente | 2020 US election | Oct 8, 2020, Mustafa Sonmez | Oil and gas | Oct 8, 2020, Al-Monitor Staff | 2020 US election | Oct 5, 2020, Al-Monitor Staff | Iran-US tensions | Oct 5, 2020, Al-Monitor Staff | Coronavirus | Oct 2, 2020. Last year, Putin and the crown prince used the summit in Buenos Aires to give their political backing to extend the OPEC+ deal into the first half of 2019. Saudi Arabia and Russia are the largest members in the group, and usually both nations are able to steer the OPEC+ alliance into their preferred policy. Saturday’s verbal agreement between Putin and Prince Mohammed highlights the importance of the G-20 as a key policy-making forum for oil and OPEC watchers. Russian President Vladimir Putin and Saudi Arabia's Crown Prince Mohammed bin Salman attend a meeting in Riyadh, Saudi Arabia, Oct. 14, 2019. According to Inhofe, Princess Reema “affirmed that Saudi Arabia has called for an OPEC meeting to negotiate a resolution to global oil production and stabilize the global oil market.”. The announcement marks the first time a senior leader from the group has indicated the curbs could be needed into 2020. © 2020 Al-Monitor, LLC. Saudi oil officials later confirmed their support to the extension, although cautioned they still needed to discuss the deal with other OPEC ministers. Saudi Arabia's state oil company Saudi Aramco 2222.SE and Russia's Energy Ministry did not immediately respond to requests for comment.