Russian President Vladimir Putin said on Monday that extending oil output cuts for further nine months would ensure stable oil prices.

Putin, speaking in Beijing, said extending the output cuts was the right thing to do.

“I have met with the heads of the companies … and we support the proposal,” said Putin, who said it was right that Russia was choosing how to approach the issue itself.

He was speaking after Saudi Arabia and Russia, the world’s two top oil producers, agreed on Monday on the need to extend the cuts for a further nine months until March 2018 to rein in a global crude glut, pushing up prices.

Russia and Saudi Arabia heavily depend on oil revenues. Last year they agreed the first joint output cuts in 15 years despite major political differences, including their support for opposite sides in the Syrian war.

Saudi, the de facto leader of OPEC, and Russia, the world’s biggest producer, together control a fifth of global supplies.

Their latest joint action was spurred by oil prices dropping to under $50 per barrel, below their budget needs.

Under the current agreement that started on Jan. 1, the 13-country OPEC and other producers pledged to cut output by almost 1.8 million barrels per day in the first half of the year.

Reuters