Brent crude prices rose to their highest level in a year this morning after Russia announced it’s ready to join a proposed deal to cap oil production in a bid to stem a two-year price slide.
Reuters reports global benchmark Brent crude futures rose to $53.22 per barrel this morning, up $1.29 from Friday’s closing price.
Russian President Vladimir Putin says an output freeze or even a production cut are likely the only available options to maintain energy sector stability. “Russia is ready to join the joint measures to cap production and is calling for other oil exporters to join,” Putin said at an energy congress in Istanbul.
The Organization of the Petroleum Exporting Countries, of which Russia is not a member, aims to agree an output cut by the time it meets in late November. The goal is to cut production to a range of 32.50 million barrels per day to 33 million barrels per day.
The news fueled an oil price rally last week which led to speculators making a record increase in bullish positions on Brent crude prices, latest data from InterContinental Exchange shows.
