Oil Continues Rebound as OPEC, Russia Eye Production Cut Agreement

The price of oil on international indices has rebounded for a second straight trading day after leaders from Saudi Arabia and Russia indicated that production cuts were likely to stabilize oversupplied markets, according to reports.

But while sentiment appears to indicate a looming decision to cut production by OPEC members and Russia at a meeting in Vienna, Austria on Thursday, a final decision on amount is not done, according to Saudi Arabia’s Minister of Energy Khalid Al-Falih.

In an interview with Bloomberg, Al-Falih said he saw an oversupplied market, “but cautioned that all the members of the OPEC+ group, which includes allies such as Russia and Kazakhstan, needed to come together for a cut to go ahead,” according to the report. Al Falih said that Moscow backs output curbs “in principle,” but it’s “premature” to say what they will agree in Vienna this week.

He also walked back previous statements about the size of any supply reduction, saying the group is likely to cut but still needs to “figure out what needs to be done and by how much.”

According to Reuters, OPEC and its allies are working towards a deal this week to reduce oil output by at least 1.3 million barrels per day, citing four sources.