Oil climbs back to $50 as Saudis near deal

OIL rose back towards $50 a barrel after Saudi Arabia and Russia struck a deal that could stabilise the market.

Crude – which fell from $115 a barrel in mid-2014 to less than $28 earlier this year – gained almost 5pc before settling around 2pc higher at $47.50.

The rally came after the two countries’ energy ministers signed an agreement on the sidelines of the G20 meeting in China following talks between Russian president Vladimir Putin and Saudi deputy crown prince Mohammed bin Salman.

A statement said the plan was to support the ‘stability of the oil market’ and to ensure ‘a stable level of investment in the long term’.

Russian energy minister Alexander Novak said it was willing to join a freeze in oil output as he hailed a ‘historical moment’ for the industry. But there was no immediate cut to production despite concerns the supply of oil around the world still exceeds demand – putting downward pressure on prices.

The deal came as G20 leaders agreed to co- ordinate policies to bolster the global economy and oppose protectionism – although there were few concrete proposals. ‘We aim to revive growth engines of international trade and investment,’ said Chinese president Xi Jinping at the end of the summit.