Oil turns around and increases after Russia leans toward a reduction in production By Reuters

by Amanda Cooper

LONDON (Reuters) – Oil reversed its trend and rose on Thursday , after industry sources said that Russia had accepted the need to reduce its production, with OPEC.

The price is still set for its biggest one-month drop in November since the depths of the 2008 financial crisis, having lost more than 22% so far.

A seemingly unrelenting increase in the supply of US crude, combined with Saudi Arabia's insistence not to curtail its own production in order to stabilize the market, had previously sent the Brent crude to another 2018 dip below $ 58 a barrel.

The Russian Energy The ministry held a meeting with the heads of domestic oil producers on Tuesday, ahead of a meeting in Vienna of the Organization of Petroleum Exporting Countries and its allies on December 6 and 7.

"The idea at the meeting was that Russia needed The essential question is how fast and in how long," said a familiar source of talks between Russian oil companies and the ministry.

Brent () crude futures were up 51 cents a day at $ 59.27 a barrel, compared to a low of $ 57.50 in the previous session. US gross () rose 68 cents to $ 50.97.

Russian President Vladimir Putin, whose country is the world's second largest oil producer, said on Wednesday that he was in contact with OPEC and ready to continue cooperation on supplies if necessary, but that he was satisfied with a $ 60 oil price. ] US Crude inventories reached their highest level in a year and are now only 80 million barrels below the record of 535 million barrels in March 2017, according to the Energy Information Administration.

"WTI oil is now trading around the $ 50 a barrel level, a price last posted well over a year ago, and the current overproduction situation is now translated by 10 consecutive weekly increases in US oil inventories, "said William O" Loughlin, investment badyst at Rivkin Securities, Australia.

"We have seen a tremendous increase in supply and the demand situation is in question. However, we may see some evolution in global trade issues at the G20 meeting starting Friday, "said Michael McCarthy, Chief Strategist at CMC Markets and Stockbroking.

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