Oil rises in price on 5% against the agreement between Russia and Saudi Arabia

© RIA Novosti / Maxim to Bogodeeva in photobacteria oil. Archival photoOil rises in price on 5% against the agreement between Russia and Saudi Arabia© RIA Novosti / Maxim to Bogodeeva the image Bank

World oil prices Monday morning jumped 5% on news of the agreement between Russia and Saudi Arabia in the OPEC agreement+, according to the auction.

As of 7.13 MSK price of February futures for North sea petroleum mix of mark Brent has grown by 4.91% to 62.4 per dollar per barrel. The price of January futures for WTI rose by 5.38% to 53,66 per barrel.

On Saturday, Russian President Vladimir Putin said that Russia and Saudi Arabia have agreed to extend the agreement OPEC+, but there is no understanding of volume. And the Minister of energy of Russia Alexander Novak said that the approaches to the future of the agreement OPEC+ to be agreed in the coming days, before the conference in Vienna.

This week in Vienna will be a meeting of the Ministerial monitoring Committee of OPEC, meeting of Ministers of OPEC member countries and the meeting of Ministers of all 25 member countries of the OPEC agreement+.

OPEC and several non-organisation countries (OPEC+) agreed in late 2016 in Vienna on the reduction of oil production to 1.8 million barrels per day from the level of October 2016, of which 300 thousand were in Russia. The contract started from the beginning of 2017 and has been extended until the end of 2018. In June 2018 OPEC+ agreed goal is to escape from the fulfillment of the terms of the agreement, which then accounted for 47%.

«The market is waiting for a coordinated production cut to stabilize the oversupplied market and taking into account the slowdown in demand», — quotes Agency Reuters analysts Fitch Solutions.

An additional reason for investors ‘ optimism began trade agreement with the United States and China, reached after the G20 summit. In particular, the United States agreed not to raise tariffs against China from 10 to 25% from 1 January for goods imports $ 200 billion. However, the United States warned that if in the next 90 days is not reached agreement with China on certain trade issues, the fee will increase to 25%. Morgan Stanley analysts note that the agreement, giving the parties 90 days to negotiate, became a pleasant surprise for markets.

Oil rises in price on 5% against the agreement between Russia and Saudi Arabia© Infographicsrussia forces in the world oil market

Source