Oil holds near $54 on Saudi-Russia supply pledge, rig data

11th June, 2019 09:26:50 printer

Riyadh: Oil steadied near $54 a barrel after Saudi Arabia said it could agree on plans for production with Russia at the G-20 summit this month.

Futures traded 0.1 per cent higher, after earlier adding as much as 1.6 per cent. There’s almost unanimous agreement in Opec to extend production cuts, and holdout Russia could come on board before the deal’s expiry at the end of June, Saudi Arabia’s Energy Minister Khalid Al Falih said in an interview with Russian news service Tass, report agencies.

Al Falih and his Russian counterpart, Alexander Novak, may both be in Japan for the G-20, which could provide a chance to “calibrate” their positions, he said. US working rigs fell to the least since early 2018 last week, Baker Hughes data show.

Crude has fallen around 18 per cent from a peak in late April and volatility has jumped as deteriorating US-China trade relations cast a pall over the global growth outlook, while rising tension in the Middle East kept investors on edge. A united front from the Organisation of Petroleum Exporting Countries and its allies is helping to restore some stability, while broader risky assets were rallying Monday on relief that President Trump didn’t impose tariffs on Mexico.