Russia accepts need for oil cuts, bargains with Saudi on details

Russia accepts need for oil cuts, bargains with Saudi on details

One of the world's major oil contracts, New York's WTI, slumped under $50 per barrel on Thursday, reaching the lowest level in almost 14 months.

He said: "As is often the case at OPEC meetings, the debate will likely be oriented around the contrasting opinions of Saudi Arabia (looking for a cut) and Russia (think it is too early to say).The Russians have a valid point in wanting to delay; if an OPEC cut was followed in 2019 by a combination of further declines in Iranian exports and underwhelming growth in U.S. production, the market could start to look tight - or even enter a deficit". The tool, known as OpecWatch, uses West Texas Intermediate crude oil options markets to calculate the probabilities of certain outcomes of OPEC meetings.

Moscow has so far resisted joining any new production cuts and Falih did not say whether he had heard of any change in Russia's position.

Putin's remarks show support for the Saudi prince, while analysts think that the G-20 summit in Argentina may be the more important venue for the OPEC-Russia oil cooperation than next week's full OPEC+ meeting.

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For almost a month-since an OPEC/non-OPEC panel signaled that there might be a need to cut oil production by 1 million bpd to balance the market-Russia has warned against any hasty decisions on new production cuts and has not officially said that a cut is needed.

The price of Brent has slumped by more than 30 percent from a four-year high above $86 in early October, pressured by concerns that supply will exceed demand in 2019 as economic growth slows. Its November production surged to an all-time record above 11 MMbpd, prompting a jubilant response on Twitter. Wise stated that that would depend on the severity of cuts adopted by OPEC and its allies.

International Brent crude oil futures were at $59.68 per barrel at 0742 GMT, up 17 cents, or 0.3 percent, from their last close. The WTI's 14-day Relative Strength Index is still in oversold territory. USA crude futures (CLc1) rose $1.16, or 2.3 percent, to $51.45 a barrel, having hit a high of $52.20.

Saudi Energy Minister Khalid al-Falih said signals from Iraq, Nigeria and Libya were positive ahead of the group's December 6 talks because all ministers want to restore oil market stability.

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Russian President Vladimir Putin, second right, during a visit to oil refinery in Kirishi, near St Petersburg on Friday, July 8, 2011.

Crude oil price remained in a major downtrend and it recently traded below the $53.00 and $52.00 support levels.

Riyadh, however, has come under renewed pressure from US President Donald Trump, who asked the kingdom to refrain from output reductions and help to lower oil prices further.

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