US and Russia move closer on energy

The United States and Russia have given further signs of moving their energy policies closer together.

US Energy Secretary Spencer Abraham, and his Russian counterpart, Igor Yusufov, said after talks in Moscow that the price of oil must be fair and dictated by market conditions.

The two countries are setting up a new joint working group for closer consultations on energy.

The move comes amid speculation of a looming confrontation between Moscow and the oil producers' body Opec, which wants Russia to make larger cuts in oil exports to support the price of the commodity.

A BBC correspondent in Moscow says the strength of US-Russian energy cooperation will be tested early in December when Moscow decides how much oil it will export next year.

From the newsroom of the BBC World Service