Putin says Russia and Saudi Arabia to extend OPEC+ oil pact

Putin says Russia and Saudi Arabia to extend OPEC+ oil pact

Speaking at a news conference, Qatar's Energy Minister Saad al-Kaabi said the country would withdraw from OPEC on January 1, 2019, ending a membership which has stood for more than half-a-century.

Furthermore, during the G20 Leaders' Summit, both Russian Federation and Saudi Arabia agreed to cut oil production in 2019.

Trading action was also held in check ahead of weekend meetings of the Group of 20 in Argentina, where oil talks are expected take place on the sidelines, ahead of an official meeting on December 6 between OPEC and its allies.

The chief market analyst at XTB, David Cheetham, stated: "Speculation is mounting that Opec will deliver an output cut when they convene for their bi-annual meeting in Vienna next week, but whether it will be enough to stem the slide remains unknown".

Oil prices had their weakest month in more than 10 years in November, losing more than 20 per cent as global supply has outstripped demand. "But the details are now what matter - how much will be cut, from when, for how long and, crucially, from what baselines".

"Markets will be watching how OPEC will grapple with multiple threats to their efforts to keep prices buoyant", says Peter Kiernan, a lead energy analyst at forecasting and advisory services provider Economist Intelligence Unit. They've been exempt from the group's cuts agreement and are unlikely to welcome a decision to include them in any new cuts, Petromatrix's Jakob said. "Russia now will most likely agree to a cut of 200,000+ barrels per day from a relatively recent baseline, probably levels reached in the last couple of months".

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Prices of the global benchmark, Brent crude went tumbling about a third from an October high due to multiple reasons including rising supply from the USA shale regions, Saudi Arabia and Russian Federation, slower demand growth and American waivers on oil sanctions on Iran.

Brent jumped as much as 4.6 percent on Monday in London, hitting $62.20 a barrel on the ICE Futures Europe exchange.

"Markets think there will be some sort of a cut", said Mike Wittner, head of oil market research at Societe Generale SA.

That growing belief saw oil prices trim early falls on Friday. Its November production surged to an all-time record above 11 million barrels a day as prices swooned, prompting a jubilant response on Twitter from the White House.

The U.S., which is been pumping shale oil at a record rate, has been leaning on Iraq to resume production at northern fields around the city of Kirkuk and to resolve its oil-revenue disputes with the Kurdish administration.

That has left Brent was down about 12% so far this year, as surging oil production in the US, Russia and among key members of OPEC has helped to create a glut in global markets.

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