Earlier in the day, Russia said it had not started energy talks with Saudi Arabia and no talks between the countries' leaders were scheduled for Friday.

Saudi Arabia called for an urgent meeting of OPEC+ producers to discuss ways to stabilise the oil markets, the country's state-run news agency SPA said in a statement on Thursday.

"This invitation comes within framework of the Kingdom's constant efforts to support the global economy in this exceptional circumstance, and in appreciation of the US President's request and the US friends' request," the agency said after a phone talk between Saudi Crown Prince Mohammad Bin Salman with US President Donald Trump.

This comes as US President Donald Trump boasted on Thursday that he had spoken to the Saudi crown prince, who as he said had a conversation with Putin on the oil prices.

The claim was promptly refuted by Kremlin spokesman Dmitry Peskov about such a phone conversation.

"No. There was no such conversation," Peskov said when asked whether Putin had a phone conversation with bin Salman.

Global Oil Market Volatility

Trump's tweets about possible oil production cuts by Russia and Saudi Arabia by a total of 10-15 million barrels a day have already sent oil futures to trade about 20 percent higher.

Brent oil futures jumped by 40 percent, peaking at $35.99 on Thursday, before retreating.

As of 14:47 GMT, Brent crude futures for May delivery were trading up 22.25 percent at $30.45 per barrel, after earlier reaching a daily high of $35.99 per barrel.

Commenting on the oil price situation earlier on Thursday, Russia's Energy Minister Alexander Novak said there is currently no need for the country to boost oil production. Only oil demand growth could change the situation in the market, production cuts cannot compensate for the decreased demand that was caused by the coronavirus pandemic, the minister said.

The global energy market has been in turmoil, with oil prices reaching historical lows following the failure of the OPEC+ alliance to agree on production cuts last month and also due to the economic recession linked to the coronavirus pandemic. 

 

Russia & Saudi Arabia Have Not Started Energy Talks Yet, Friday Negotiations Not Scheduled - Kremlin

Earlier this week, US President Donald Trump said that he thinks Russia and Saudi Arabia will reach a deal on oil production soon.

Russia and Saudi Arabia have not started energy talks yet, and no negotiations between the countries' leaders are scheduled for Friday, Russian presidential spokesman Dmitry Peskov said. 

Russian President Vladimir Putin has recently said that Russia and other oil exporters had to find a solution to mitigate the oil price drop.

"Nobody has mentioned any deals, even abstract ones, instead of OPEC+ yet. The energy markets, the oil markets were indeed discussed [by Putin] with Trump. Nobody is happy with this situation, as we have already said," Peskov said, when asked if there was any question of a new deal instead of OPEC+.

Meanwhile, Russia's Energy Minister Alexander Novak said there is no need for the country to boost oil production now. He believes that a deal between the OPEC+ members, including Riyadh's initiative on deeper oil production cuts, would not be a way-out in the current situation. 

Only oil demand growth could change the situation in the market, production cuts cannot compensate for the decreased demand that was caused by the coronavirus pandemic, Mr Novak added. 

Putin to Hold Meeting on Energy Markets Later on Friday

Russian President Vladimir Putin will hold a meeting on the global energy markets with cabinet leadership, the presidential administration, and heads of the largest oil companies on Friday, presidential spokesman Dmitry Peskov said.

"Later in the day, he [the president] has one more important event planned. This is a meeting on the situation on the global energy markets. In fact, it will be the same format that happened before the president left for a regional trip, before the OPEC+ deal was derailed. Today, Putin will ... meet with the government leadership, the presidential administration, industry managers and our key oil companies, the heads of our largest oil companies," Peskov told reporters.

On Thursday, Saudi Arabia reportedly called for an urgent meeting of OPEC+ producers to discuss ways to stabilise the oil markets. 

This came after US President Donald Trump tweeted that he expected Russia and Saudi Arabia to cut oil production by 10-15 million barrels per day. 

Russia's Energy Minister Alexander Novak said on Thursday that there was no need for the country to boost oil production. He said that only oil demand growth could change the situation in the market, while production cuts cannot compensate for the decreased demand that was caused by the coronavirus pandemic.

Oil market volatility has increased sharply after the OPEC+ alliance failed to agree on production cuts last month and also due to the economic slowdown linked to the coronavirus pandemic.