Last Thursday, the prices of crude oil clawed back its losses after the release of reports that Russia has accepted the necessity to reduce its output.
The global benchmark, Brent crude, steeply increased on the same day to $59.26 per barrel after closing at $58.12 last Wednesday.
US West Texas Intermediate was also able to recover, having dropped below $50 per barrel for the first time since October of the previous year.
Oil prices have been experiencing a steep decline in the past weeks because of an increase in the crude supply of the United States of America. Last Wednesday, the market took a further hit when Khalid al-Falih, the Energy Minister of the Kingdom of Saudi Arabia, said that his country would not reduce its output alone in order to stabilise the market.
However, the prices were able to recover on Thursday after the media reports that Russia is now open to the idea of cutting its output.
According to Reuters, the Russian Energy Ministry held discussions with domestic oil producers last Tuesday.
A source from Russia informed Reuters: “Most people agreed that we cannot reduce immediately, it needs to be a gradual process like last time.”
The fluctuation in oil prices comes ahead of a meeting among the Organisation of the Petroleum Exporting Countries (Opec) that is scheduled to be held in Vienna on the 6th of December.
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.”