Saudi says oil deal with Russian Federation helping market, demand healthy

King Salman bin Abdulaziz Al Saud acceded to the Saudi throne in 2015

Saudi Arabia also signed a Memorandum of Understanding (MoU) with Russian Federation to further localize military industries.

During his visit to Moscow, Saudi King Salman signed multi-billion dollar economic agreements, including a partnership between Russian Federation, the Public Investment Fund (PIF) and Mubadala to invest in infrastructure.

OPEC ministers attending the Moscow event said they were considering extending the deal or making a deeper cut.

Russia's budget revenue from oil and gas taxes, which earlier this year recovered to 2015 levels, fell again by July on crude-price fluctuations and a stronger rouble.

USA crude oil exports jumped to 1.98 million bpd last week, surpassing the 1.5 million bpd record set the previous week, the Energy Information Administration said.

Brent crude pared losses to reach an intraday high of $55.89 a barrel following Putin's comments. SYRIA DIFFERENCES In Syria, Riyadh supports rebels fighting President Bashar al-Assad's army, while Russian and Iranian forces have sided with Assad. "We seek to strengthen bilateral relations for the sake of peace and security, for the sake of the development of the global economy", the Saudi monarch stressed.

It was the first ever state visit by a Saudi monarch to Russian Federation, and both sides were looking to broaden the relationship.

"This is the first visit of the King of Saudi Arabia to Russian Federation in the history of our relations, which in itself is a very significant event".

The leaders held one-on-one talks, followed by broader discussions.

Vedomosti newspaper reported that Saudi Arabia's sovereign fund is also eyeing investment into a toll road project in Moscow, which would be the first one for the capital.

The current agreement runs until March 2018.

Moscow and Riyadh also agreed to develop production in Saudi Arabia of the Kalashnikov automatic rifle and its ammunition as well as educational and training programs for Saudi nationals.

Russian Energy Minister Alexander Novak told Al Arabiya TV this week that the two sides plan to launch a $1 billion fund to invest in energy projects, without giving further details.

"Work is ongoing to list Saudi Aramco in 2018", Aramco's Chief Executive Amin Nasser said at an energy forum in Moscow.