November 19, oil steadied and gained in the previous three sessions from the prospect that Saudi Arabia, which is a top exporter, will push OPEC and, probably, Russia to cut supply till the end of the year, as Reuters reported.
As the news agency informs, “Brent crude futures were down 6 cents at $66.70 a barrel by 1243 GMT, while U.S. futures were up 3 cents at $56.49.”
The Organization of the Petroleum Exporting Countries, headed by Saudi Arabia, pushes for the group to lower the output by 1 million to 1,4 million barrels per day to prevent an increase of unused fuel.
“It appears that the market takes a production cut for granted. We’ll see if it is right after the next OPEC meeting on December 6. It is not unreasonable to anticipate stable prices until then,” Tamas Varga, PVM Oil Associates strategist, said.
Alexander Novak, Russian Energy Minister, stated that Russia, which is not an OPEC member, intended to sign a partnership agreement with the group. The details would be discussed at the meeting of the organization scheduled for December 6 in Vienna.
“Brent is almost 25 percent below early October’s 2018 peak of $86.74, as evidence of slowing demand has materialized and output from the United States, Russia and Saudi Arabia hit historic highs,” the news agency reads.