Vladimir Putin's message on oil yesterday was somewhat ambiguous..
As a Bloomberg article earlier in the day indicated, oil futures fell amid traders' concerns that Russian Federation would not join other major oil producers in cutting production.
Oil prices bounced back to $51/bbl in NY, erasing an earlier loss, after a report that Russian Federation accepts the need to cut production in conjunction with OPEC. It resumed pumping crude for export by pipeline from northern fields this month and is expanding capacity to produce at its main deposits in the south.
The price traded as high as $52.21 and it is now correcting lower.
But oil trade, vital for Russian economy, is conducted in U.S. dollars, a "monopoly" Russia's President Vladimir Putin wants to end. In its northern region, the nation is also seeking to fix oil pipelines and facilities damaged in the more recent conflict with Islamic State militants. As Delia Morris, Houston-based commodity pricing analyst, told Rigzone earlier this week, global oil markets are anxiously awaiting the outcome of the December 6 Organization of the Petroleum Exporting Countries (OPEC) meeting and whether the cartel will agree to curb output.
While EIA data include only US inventory the survey results are considered more reliable than worldwide figures and are often used a surrogate for global inventory status.More news: Girl's Letter to Steph Curry Changed How Under Armour Sells His Shoes
Natural-gas futures, meanwhile, settled lower after the Energy Information Administration reported Thursday that domestic supplies of natural gas fell by 59 billion cubic feet for the week ended November 23.
"As Saudi Arabia we can not do it alone, we will not do it alone", he told reporters in Abuja where he met his Nigerian counterpart Emmanuel Ibe Kachikwu.
Saudi Arabia led suppliers to cut production two years ago to curb a glut, then reversed course in June on concerns that United States sanctions on Iran could create a shortage.
WTI came under aggressive selling pressure and hit the lowest levels since October 2017 at 49.46 on a break of the key psychological support at 50, as stop triggered below the last and paved the way for further declines. Libya's current oil production is 1.266 million barrels a day, according to Bloomberg calculations based on data from people with knowledge of the situation. This is stark contrast to his statement two weeks ago, when Putin had said that Russian Federation would be okay with a $70 per barrel price. According to Reuters, Moscow intends to reduce oil production gradually, and at the moment it is trading with Saudi Arabia with respect to time and volume reduction.
"We are in contact with OPEC, and we are ready to continue our joint efforts if needed", Putin said on Wednesday.