Oil bounces back following reports Russia is prepared to cut output
Crude oil prices today clawed back losses following reports that Russia has accepted the need to cut its output.
Brent crude, the global benchmark, rose steeply today to $59.26 a barrel after closing at $58.12 yesterday.
US West Texas Intermediate also recovered, having fallen below $50 a barrel for the first time since October 2017.
Oil prices have been in steep decline in recent weeks due to a rise in US crude supply. The market took a further hit yesterday when Saudi Energy Minister Khalid al-Falih said his country would not cut its output alone to stabilise the market.
But prices recovered today following media reports that Russia is open to the idea of reducing its output.
The Russian Energy Ministry held talks with domestic oil producers on Tuesday, according to Reuters.
“Most people agreed that we cannot reduce immediately, it needs to be a gradual process like last time,” a Russian source told Reuters.
The fluctuation comes ahead of a meeting of the Organisation of the Petroleum Exporting Countries (Opec) in Vienna on 6 December.
“Speculation is mounting that Opec will deliver an output cut when they convene for their bi-annual meeting in Vienna next week, but whether it will be enough to stem the slide remains unknown,” said David Cheetham, chief market analyst at XTB.