Oil rises 2 percent, boosted by potential OPEC deal

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Russian President Vladimir Putin speaks at the Russian Energy Week Energy Efficiency in Moscow

Countries like Saudi Arabia, Russia and Venezuela have been struggling to cope with the impact of low oil prices.

The King of Saudi Arabia, Salman bin Abdul Aziz Al Saud, arrived in Moscow on September 4.

Riyadh has agreed to purchase S-400 air defense missile system from Russian Federation, according to Saudi television station al-Arabiya.

Two Russian submarines fired 10 "Kalibr" cruise missiles from the Mediterranean Sea at militant targets in Syria's Deir al-Zor province in an effort to support a Syrian army offensive, Russian news agencies cited the Defence Ministry in Moscow as saying on Thursday (October 5).

President Vladimir Putin said on Wednesday that Russian Federation is open to extending the deal to the end of 2018, though he'll wait until nearer the expiry of the existing pact to make a decision. And Russia is close to Iran, a fierce adversary of Saudi Arabia despite their status as OPEC members.

Saudi Arabia and Russian Federation are heavily dependent on oil exports and the plunge of the price of crude that began in 2014 lashed both of their economies. The recovery in oil markets has helped other commodities, he added.

"The visit is likely to strengthen trade ties between Russian Federation and Saudi Arabia, but most are wondering whether two of the world's major oil producers will be discussing a collaboration to improve the price of oil", Ahmad said.

Reuters are reporting that Saudi Aramco's CEO Amin Nasser has announced that the company is discussing several investment opportunities with Russian companies but there are no current plans to take a stake in Novatek's LNG project.

King Salman, stuck on his golden escalator.

Al-Falih noted that Aramco's IPO will be used as a catalyst for the opening up of the Saudi economy.

A joint Saudi-Russian investment fund was launched worth $1 billion.

Russian Energy Minister Alexander Novak said that the value of investment agreements expected during the visit is more than $3 billion.

For years, the world's biggest oil producers have clashed over Middle East politics and battled for energy market share.

"Moscow has been entertaining the idea of selling its weapons to Saudi Arabia but it seems that Riyadh is not ready to go that far", Barmin told CNNMoney.

Earlier this year Saudi Arabia pledged billions of dollars of investment in projects in Indonesia and Malaysia to ensure long-term oil supply deals.

Saudi Aramco is the national oil company of Saudi Arabia, 100-percent controlled by the Government of Saudi Arabia.

The Kremlin said ahead of the visit that Salman and Putin would also discuss the Middle East, "especially focusing on conflict situations in the region".

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