Rouble rallies as Saudi and Russian Federation agree on oil output cut

But one major unknown will be the response of low-priced USA shale producers, which could undermine the unified effort to prop up the market. Brent crude oil was up 30 cents at $52.12 a barrel by 1335 GMT. The ministers said they hoped other producers would join the supply cut, which will initially be on the same volume terms as before. "It's really only scalable around $50-$55 a barrel, which means [OPEC producers] have a lot of room in which they can grow production underneath that level".

Asian Stocks Mixed, Investors Digest Oil Output-Cut Extension

Oil producers worldwide, including 11 non-OPEC members, joined together in December 2016 to agree on 1.8 million barrels per day of production cuts that would successfully stabilize the oil price in 2017. "The negative oil reaction to a 9-month OPEC production cut extension is a prime example of "buy the rumour, sell the fact". Bloomberg also noted that Saudi Arabia generally has less oil to supply to the summer months due to amplified domestic demand for cooling needs ...

Saudi Arabia To Trim Oil Exports To US To Force Inventories Lower

This is why Saudi cargoes to the recent months have totaled 1.21 million barrels a day - the highest rates since 2014, the year of the oil price crash. Brent crude, the global standard, rose 3 cents to $51.49 a barrel in London . Meanwhile, analysts said there was caution in the markets ahead of a meeting of leaders from the world's richest economies that was expected to expose deep divisions with U.S.

Oil: cuts to last more nine months

By keeping production at about 1.8 million barrels a day lower than late 2016's levels, the group is suppressing about 2 percent of global supply. The group of major producers will maintain current cuts to output for nine months until March, Reuters reported, citing an unidentified Opec delegate.

Wood Mac: Don't expect an OPEC-fueled rally in crude oil prices

With over a dozen other countries expected to join the cartel's efforts, the agreement is likely to cut off about 2% of the world's oil supply through March 2018, extending a decision the OPEC-led coalition reached a year ago. "In this regard, the aforementioned non-OPEC countries chose to extend their production adjustments, which originally started 1 January 2017, for a further period of nine months, beginning 1 July 2017", OPEC said .