Oil jumps 3% on Russia's expectations after falling below the 50 USD mark earlier by Investing.com

Investing.com – The fear of the Russians by the oil market seems bigger than his fear of Trump's tweets.

US. West Texas Intermediate crude exceeded Thursday's forecast support of $ 50, reaching a new low at 13 months of $ 49.46 per barrel.

But in a few hours, the Russians have taken up the idea that the Russians could contribute after all to oil production. Cut off at the expanded meeting of OPEC + on December 6th. Moscow has been dragging its feet for weeks before Saudi pressure so that it is necessary to reduce production to support the market.

jumped $ 1.51, or 3%, to $ 51.89 per barrel at 12:36 pm (17:36 GMT). It fell earlier to $ 49.46, the lowest since October 2017.

U.K. , the global benchmark for oil, rose $ 1.25, or 2.1%, to $ 60.34. Earlier in the session, it fell to $ 57.78, its lowest level since July 2017.

Oil prices rebounded after a Reuters report, citing sources, that the department Russian Energy had met the country's domestic crude producers and had reached a consensus the reduction in production was needed. The parties badyzed the scale and timing of the reductions, the report adds.

WTI and Brent both lost about a third of their value in just under two months after the more severe sanctions that President Donald Trump had planned against Iran's oil exports. , which, along with record production from the United States, Saudi Arabia and Russia, have flooded the market with supply.

Just as detrimental to the psyche of the market were tweets from the president that the Saudis should not reduce production, had provided a directive of the traders Riyadh must comply with the sanctions imposed by the United States after the 39 badbadination of journalist Jamal Khashoggi.

"Despite the tragedy, the cartel will have to be reduced," said Phil Flynn, energy badyst at Price Futures Group in Chicago. at the OPEC.

"It is clear that the Russians only want to watch the Saudis squirm a bit, we should have confirmation of some sort of reduction this weekend," Flynn added, referring to Friday's G20 meeting. see you Saturday. which will be attended by Saudi Energy Minister Khalid al-Falih and his Russian counterpart Alexander Novak. Traders expect the two energy superpowers to use the G20 to chart the cuts planned at the expanded OPEC + meeting.

Al-Falih said on Wednesday that a reduction in production was essential to prevent a further drop in crude prices. Riyadh did not intend to sacrifice market share unless other major OPEC and OPEC producers contributed to the reduction. The minister's remarks come as Russia still seems hesitant about the plan and Nigeria, a member of OPEC, does the same: