— This is the script of CNBC's news report for China's CCTV on October 14, 2019, Monday.
Whatever the military assault in Syria or the Iranian oil tanker's explosion or Saudi oil infrastructure attacked boosted international oil price, recently.
Brent has gained nearly 10% YTD.
But lost over 20% in the past one year.
Under current demand-supply level in crude oil market, Russia President Putin called that global oil inventories need cutting to "reasonable levels". Putin will visit Saudi Arabia on Monday and visit UAE on Tuesday to discuss the measures to stabilize oil price. After an attack on an Iranian tanker and an attack on a Saudi crude oil production facility, the market expects widely that OPEC and Russia will upgrade their cooperation.
Energy cooperation is just one aspect, according to information from Russia, Putin will sign around 30 agreements with Saudi Arabia, covering agriculture, industrial intelligence and military etc., Putin said in an interview with Saudi media that Russia will play a positive role in easing tensions in gulf. The visit is also Putin's first official visit to Saudi Arabia since 2007. Putin's visit is under spotlight on the backdrop of complex situation in the Middle East. Compared to America, Russia starts to cooperate more and more close with the Middle East, that alarms some U.S. observers.
We know that there are 3 outside parties compete in the Middle East area, U.S., Europe and Russia. Since Trump took office, U.S. adjusted its strategy for the Middle East, and U.S. military to withdraw from some Middle East countries, under sanctions imposed by western countries, Russia has turned to closer cooperation with many countries in the Middle East. In order to break the financial blockade, Turkey and Russia recently established a bank settlement mechanism. Kirill Dmitriev, CEO of Russian Direct Investment Fund told CNBC that Russia's expanding investment and trade in Saudi Arabia should be seen as bridges-building, a type of repair measure, rather than the strategic competition that many in the west often warn about.
CEO, Russian Direct Investment Fund.
we are not talking about, you know, the strategic partnerships that Saudi has with the U.S., and what we are doing is not against the U.S. It's actually building something that is very positive," "And building something that helps Saudi economy, Russian economy - and builds the friendship between our nations."
However, some experts believe the U.S. would not really stay away from the Middle East but will come back again aiming the interest.
Hadley Gamble, CNBC anchor
we've seen American is really disappearing from the scene
yes, because they have been beaten, and they think there is no clear American interests, and anyway they cannot allow be the policeman of the world, but eventually they will come back in the interest of. because they are asked to come back or interest of stability or investment
Putin said Russia can withdraw from Syria after the U.S. did so. So the geopolitical situation in the Middle East is facing re-construction, but there is no clear clue for its change. We will keep an eye on this issue.