Russia says nations to meet over oil output

RUSSIA’S Energy Ministry said yesterday that OPEC and non-OPEC members would meet in Vienna on Saturday following a decision to cut global oil output.

The ministry said Russian Energy Minister Alexander Novak would be taking part in the meeting, which comes after Moscow said it was ready to reduce crude output by 300,000 barrels a day in the first half of 2017.

After months of disagreement, OPEC members last week hammered out a deal to cut oil output for the first time in eight years.

The agreement ended weeks of uncertainty and volatility on crude markets as the key players bickered over who would shoulder the biggest burden of the cuts.

Crude prices above $50

Oil prices shot up on the announcement, which was more ambitious than many analysts had expected.

Prices reached a 16-month high over OPEC’s announcement of the meeting late on Monday but quickly dipped overnight as the lustre of OPEC’s decision to cut production faded.

Yesterday at 0830 GMT, US benchmark West Texas Intermediate was down 39 cents on the day at $51.40, while Brent North Sea crude had dropped 31 cents to $54.63.

With crude prices above $50, US shale oil producers are dusting off dormant oil rigs as they gear up to raise production which could lessen the impact of any OPEC cuts.

Analysts say that last week’s deal will likely be finalised at Saturday’s meeting. Novak has called on Russia’s oil companies to slash output to comply with the decision.