By Gina Lee
Investing.com – Oil was up on Friday morning, after Russian President Vladimir Putin, on behalf of one of the world’s major oil producers, indicated his willingness to extend record production cuts.
Brent oil futures edged up 0.16% to $42.53 by 11:36 PM ET (3:36 AM GMT) and WTI futures edged up 0.15% to $40.70. Both Brent and WTI futures remained above the $40 mark.
Although Russia did not see a need to alter the OPEC deal cutting global oil supply agreed to earlier in the year, she did not rule out extending the cuts if market conditions warranted, Putin said on Thursday. His comments come as OPEC mulls easing the cuts, in place until the end of the year, and as the worsening COVID-19 pandemic threatens to further dampen fuel demand. They were also Russia’s clearest push for the extension of cuts to avoid a supply glut.
“Putin is reinforcing that Saudi/Russian unity is firmly intact and that they will continue to keep the oil prices firm,” OANDA senior market analyst Edward Moya told Reuters.
Investors are bracing, however, for the rising number of new cases to keep the black liquid in check, as the number of COVID-19 cases continue to surge in Europe and the U.S., prompting the re-introduction of restrictive measures and putting further pressure on demand.
With the weather cooling as winter approaches, several U.S. states saw a record number of daily new cases, suggesting that the spread of the virus is accelerating. France also extended curfews throughout two thirds of the country.