Russian Federation accepts need for oil cuts, bargains with Saudi on details

The key question is how quickly and by how much,” said one source familiar with the talks between Russian oil firms and the ministry

WTI oil price slides under $50 per barrel

Futures tumbled as much as 1.8% in NY, after sliding 2.6% in the previous two sessions.

The biggest snag in OPEC's push for a consensus on cutting oil output could come from relentless growth in supply from its second-biggest producer, Iraq.

Russia's energy ministry is discussing potential oil production cuts with local producers and will continue talks to come up with a position by the OPEC/non-OPEC meeting in early December, Energy Minister Alexander Novak said last week. America and OPEC did boost their output to rein in the global oil prices and then the subsequent relaxation of sanctions for countries, especially like India to import oil from Iran resulted in a market surplus leading to the reduction in crude price. While oversupply concerns were fueled by American exemptions on sanctioned Iranian oil, a trade dispute between the USA and China has threatened to hurt demand.

"Putin's comments raised speculation that Russian Federation may not join its fellow producers in curbing production", Sungchil Will Yun, Seoul-based commodity analyst at HI Investment & Futures, said by phone. USA crude futures (CLc1) rose $1.16, or 2.3 percent, to $51.45 a barrel, having hit a high of $52.20.

West Texas Intermediate for January delivery fell as low as $49.41 a barrel on the New York Mercantile Exchange, the least since October 9, 2017.

Futures in NY are set to drop about 21 per cent in November, falling for a second month. Total volume traded was 18 per cent above the 100-day average.

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In the US , as Politico notes , that could mean "months of fierce debate between the Trump administration and Congress ". Despite the symbolism of Friday's signing, Trump has no meetings with Trudeau scheduled while the two are in Argentina.

Oil-market news WTI's 14-day Relative Strength Index indicates the United States marker's remained in oversold territory since November 1 Shale explorers will likely cut spending budgets next year for the first time since the last price crash as crude spirals down again, analysts said.

US stockpiles were expected to build again in the latest week, traders said, citing data from energy information service Genscape. The more-active February contract rose 6 cents.

The Russian news also seemed to catch investors by surprise because on Wednesday, Russian President Vladimir Putin said he was in touch with OPEC and ready to continue cooperation on supply if needed, but he was satisfied with an oil price of $60.

US crude inventories have hit their highest in a year, and are now only 80 million barrels below March 2017's record 535 million barrels, according to the Energy Information Administration.

The market gained support from a supply outage in the North Sea, home to the crude that underpins the Brent contract. Contributions of 200 words or more will be considered for publication.

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