Oil Rises Above $50 on Report Russia Willing to Join OPEC Cut

Oil Rises Above $50 on Report Russia Willing to Join OPEC Cut

Saudi Energy Minister Khalid al-Falih said on Wednesday the kingdom would not cut oil output on its own.

Trump is expected to discuss oil prices with the leaders of Saudi Arabia and Russian Federation at the Group of 20 summit at the end of the week.

Possibly complicating any decision at next week's talks is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul last month.

The cooperation had been a "a 100 percent" success, Putin said, adding that this was largely due to Saudi Arabia and Crown Prince Mohammed bin Salman, the "initiator" of the deal.

Falih was in Abuja to meet his Nigerian counterpart Emmanuel Ibe Kachikwu.

But Naimi warned repeatedly that the burden of OPEC and non-OPEC production cuts would fall most heavily on Saudi Arabia and the main beneficiaries would be USA shale producers, and time has proved him correct.

Given all those political calculations, Kloza and other energy analysts say that Saudi Arabia is likely to cut production modestly and lobby other producers to do the same.

"Everybody is longing for reaching a decision that brings stability back to the market", he said.

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The choice facing Saudi Arabia at next week's OPEC meeting is dramatic: cut oil production and enrage Donald Trump, or keep pumping and risk ultra-low prices blowing up its economy.

Both markets had climbed more than 1 percent in early Asian trade.

Before the OPEC meeting in Vienna, the world's top three producers - the United States, Russia and Saudi Arabia - will be part of a meeting this weekend of the Group of 20 industrialized nations in Buenos Aires, Argentina. The market sentiment has shifted from a 70 per cent expectation of a small production cut earlier this week to about a 56 per cent chance on Friday, CME Group said.

Since the beginning of November of oil has already fallen in price on 23%. "The key question is how quickly and by how much", a source familiar with the discussions between the Russian energy ministry and local oil companies told Reuters on Thursday.

The worldwide benchmark for crude, Brent futures that expire in January were down by 2.4% to trade at a price of $58.76 per barrel on the ICE Futures Europe Exchange in London. Analysts had predicted that inventories would go up by only 1 million barrels.

Nigeria and Libya were excluded from the previous cuts because of production declines caused by unrest, though their output has now recovered.

But the U.S. also offered generous waivers to allies who imported Iranian crude and might have struggled to find other supplies quickly when USA sanctions kicked in on November 4. Only the headline has been changed.

This story has been published from a wire agency feed without modifications to the text.

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