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Brent steady after rise on Russia-Saudi pact

Published 06/09/2016, 10:50 am
Updated 06/09/2016, 11:00 am
© Reuters.  Brent steady after rise on Russia-Saudi pact
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TOKYO, Sept 6 (Reuters) - Brent crude prices were steady on Tuesday, holding most of their gains from the previous session when top producers Russia and Saudi Arabia agreed to cooperate on stabilising the oil market.

London Brent crude for November delivery LCOc1 was down 15 cents at $47.48 a barrel by 0022 GMT, after settling up 80 cents at $47.63 on Monday. The global benchmark on Monday hit a near one-week high of $49.40 after the Russia-Saudi news.

NYMEX crude for October delivery CLc1 did not settle on Monday due to U.S. Labor Day holiday. It was trading little changed from late Monday, up 64 cents at $45.08 a barrel. It rose as far as $46.53 on Monday, the highest since Aug. 30.

Russian Energy Minister Alexander Novak said Russia and Saudi Arabia were moving towards a strategic energy partnership and that a high level of trust would allow them to address global challenges.

Saudi energy minister Khalid al-Falih told a UAE-based television channel he was optimistic about cooperation with other producers ahead of a meeting this month in Algiers, adding that freezing production was not the only solution to a supply glut. Organization of the Petroleum Exporting Countries and non-OPEC producers such as Russia will hold informal talks in Algeria later in September.

Several OPEC producers have called for an output freeze to rein in the glut, which arose as supplies from high-cost producers such as the United States soared.

Brent rallied to above $50 a barrel in late August, helped by growing talk of a coordinated production freeze, but prices have since fallen as few believe OPEC will act.

Russia's Novak said he was open to ideas on what cut-off period to use if producer countries decided to freeze output. Novak said outright oil production cuts may also be discussed in Algeria.

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