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Just hours after WTI crude oil fell below $ 50, the price of oil erased its losses and began to climb on Thursday after Russia acknowledged that it needed to reduce its oil production and join a further reduction of OPEC led by Saudi Arabia to balance the market.
On Thursday, at 10:10 am EDT, WTI crude oil gained 2.05% to $ 51.32, while Brent crude oil was up 1.35% to $ 59.89.
Earlier in the day, WTI crude exceeded the US $ 50 support level for the first time in more than a year, following a new US crude inventory build-up presented by the EIA on Wednesday. .
Reuters then announced in a report that Russia had begun to admit that it was to join a further reduction in oil production driven by Saudi Arabia, but that she was still negotiating with her main partner of OPEC on the duration, potential and duration of this conflict. reduce its oil production.
Analysts believe that Russia agreeing to cut production would be crucial for OPEC / the non-OPEC group to reach a deal. Saudi Energy Minister Khalid al-Falih has already said that even though the Saudis will do all that is necessary to stabilize the oil market, they can not and will not do it alone without a collective decision of OPEC and other countries. treat the participants.
Russian President Vladimir Putin said on Wednesday that Russia was comfortable with oil a week before the OPEC + meeting in Vienna and just two days before the G20 summit in Buenos Aires , during which Putin should meet separately with the United States. President Donald Trump and Saudi Crown Prince Mohammed bin Salman.
Putin also thanked Saudi Arabia and his crown prince for cooperation between OPEC and Russia in managing the oil market.
Putin's words show support for the Saudi prince, while analysts say the G-20 summit in Argentina could be the most important venue for OPEC-Russia cooperation in the oil sector compared to the Plenary meeting of OPEC + next week.
By Tsvetana Paraskova for Oilprice.com
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