What to make of Russia and Saudi Arabia’s statement on oil

The statement by Russia and Saudi Arabia earlier today that the two countries have agreed to work together to try to stabilise the oil market did very little to justify the almost 6% surge in oil prices this morning. Indeed, prices have already given back most of their gains. The announcement mainly reiterated that both countries think that stability in the oil market is important, which is hardly surprising given that Russia and Saudi Arabia are two of the largest oil producers in the world. The only new information seemed to be the announcement that the countries are planning to set up a joint working group to look at ways of addressing instability in the oil market.