US oil prices at 2016 highs as Russia readies to align with OPEC's push to limit oil output

12-Oct-16

Russian President Vladimir said Russia is ready to reduce oil production and supports OPEC's initiative to trim production as a way to support oil prices. US oil prices finished at their highest level of 2016 as US benchmark West Texas Intermediate for November delivery spiked by over US$1.50 to US$51.3 a barrel on the Nymex, the highest closing price since July 2015.

"In the current situation, we believe a freeze or a cutting of the production of oil is the only way to preserve the stability of the energy sector and accelerate a rebalancing of the market," Putin said at the World Energy Congress in Istanbul. "Russia is prepared to join joint measures limiting production and calls on other exporting countries to do the same."
Oil prices were further propelled by remarks from Saudi Energy Minister Khalid al-Falih predicting oil prices could rise further. "We are seeing the convergence of supply and demand," al-Falih said. "It is not unthinkable we could see US$60 (a barrel) by the year end."