Crude Oil Advances as Russia Shows Willingness to Join Saudis On Cuts

Gold Silver Reports (GSR) Russia wants more predictability and “smooth price dynamics” in world crude markets, Deputy Foreign Minister Sergei Ryabkov said in an interview in Argentina.

Crude Oil climbed for the first time in three days as Russia expressed a willingness to join Saudi Arabia in curbing global supplies.

Read More:  Crude Oil Continues Big Slide Despite Saudi Talk of Supply Cuts

The remarks presaged a G-20 summit where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are expected to discuss oil supplies ahead of a broader meeting of top petroleum exporters next week.

West Texas Intermediate crude has fallen 21 percent this month, on track for its its worst monthly showing in a decade. Yet after sliding below $50 a barrel earlier on Thursday — a key budgetary marker for U.S. shale drillers — some traders saw an oversold market, said Bart Melek.

“Sub-$50 crude would stress shale producer finances,” Melek said, “suggesting the upward production trajectory could slow.”

West Texas Intermediate for January added $1.16 to settle at $51.45 a barrel on the New York Mercantile Exchange.

Brent for January settlement, which expires Friday, gained 75 cents to $59.51 on London’s ICE Futures Europe exchange.

The global benchmark traded at an $8.06 premium to WTI. The more-active February contract rose 82 cents to $59.51.

Read More: OIL REPORT — 1-U.S. Shale Oil Output to Hit Record High 7.9 Mln Bpd in Dec -EIA

Putin praised the Saudi crown prince on Wednesday and said Moscow is ready to cooperate further. He also said crude around $60 a barrel is “balanced and fair” and well above the level needed to keep his government’s budget in surplus. By contrast, Saudi Arabia needs oil at more than $80 a barrel to balance its budget.

Read More: Crude Prices Up by 1 percent After Saudi Arabia Announces December Supply cut

“Nobody is interested in either an artificial deficit or an oversupply,” Ryabkov said.

Read More: As Oil Plunges, the Real OPEC Meeting Will Be at Next Week’s G20 – Money Market Guru

Crude Oil Market News

✅ Gasoline futures gained 4.1 percent to $1.4547 a gallon.

✅ WTI’s 14-day relative strength index indicates that the U.S. marker has traded in oversold territory every day this month. The entire Brent futures curve has slumped into a bearish contango structure, indicating excess supply.

✅ China is buying the dip in oil prices in potentially large volumes, shipping and trade data suggest.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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