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| Version 2 | Version 3 |
|---|---|
| Oil price lifted by Russia backing Opec production freeze | Oil price lifted by Russia backing Opec production freeze |
| (about 7 hours later) | |
| Russia has said it will support a proposal by Opec to freeze oil production in order to reverse the slump in global prices. | Russia has said it will support a proposal by Opec to freeze oil production in order to reverse the slump in global prices. |
| The move lifted the price of oil, with Brent crude hitting a one-year high. | |
| "Russia is ready to accede to joint measures to reduce [oil] production, and is calling on other oil exporters to do so," said Russian President Vladimir Putin. | "Russia is ready to accede to joint measures to reduce [oil] production, and is calling on other oil exporters to do so," said Russian President Vladimir Putin. |
| "We support the recent Opec initiative to set production limits," he added. | "We support the recent Opec initiative to set production limits," he added. |
| In late afternoon Brent Crude oil was trading up by 2.5% at $53.21 a barrel, just off the $53.73 high hit earlier on Monday. | In late afternoon Brent Crude oil was trading up by 2.5% at $53.21 a barrel, just off the $53.73 high hit earlier on Monday. |
| Speaking at the World Energy Congress in Istanbul, Mr Putin said that oil prices had "more than halved" in two years due to surplus production, provoking a "cycle of decreasing investment". | Speaking at the World Energy Congress in Istanbul, Mr Putin said that oil prices had "more than halved" in two years due to surplus production, provoking a "cycle of decreasing investment". |
| 'Avoid fluctuations' | 'Avoid fluctuations' |
| He said that if the trends persisted, they would give way to oil shortages and "new, unpredictable price hikes". | He said that if the trends persisted, they would give way to oil shortages and "new, unpredictable price hikes". |
| He expects to reach an agreement to support a cut at Opec's next meeting in November, he said. | He expects to reach an agreement to support a cut at Opec's next meeting in November, he said. |
| "Of course, this will also cool down speculative activities and help avoid new price fluctuations," he said. | "Of course, this will also cool down speculative activities and help avoid new price fluctuations," he said. |
| In September, members of the The Organisation of the Petroleum Exporting Countries (Opec) voted to cut production for the first time in eight years. | In September, members of the The Organisation of the Petroleum Exporting Countries (Opec) voted to cut production for the first time in eight years. |
| The group's 14 members produce about a third of the world's oil and have been hit hard by falling prices, as has Russia. | The group's 14 members produce about a third of the world's oil and have been hit hard by falling prices, as has Russia. |
| High prices | High prices |
| Opec aims to agree to cut around 700,000 barrels per day at its policy meeting on 30 November in Vienna, bringing its output to 32.5-33 million barrels per day. | Opec aims to agree to cut around 700,000 barrels per day at its policy meeting on 30 November in Vienna, bringing its output to 32.5-33 million barrels per day. |
| But some analysts have questioned whether all of its members will stick to the agreement. | But some analysts have questioned whether all of its members will stick to the agreement. |
| Differences between Iran and its regional rival, Saudi Arabia, have thwarted efforts to reach a deal in the past, and Russia's latest intervention may have little impact, said John Hall, chairman at Alfaenergy group | Differences between Iran and its regional rival, Saudi Arabia, have thwarted efforts to reach a deal in the past, and Russia's latest intervention may have little impact, said John Hall, chairman at Alfaenergy group |
| "Russia and Opec have not worked well in the past, and while Vladimir Putin promising joint measures is welcome, whether he sticks to it is another matter," he said. | "Russia and Opec have not worked well in the past, and while Vladimir Putin promising joint measures is welcome, whether he sticks to it is another matter," he said. |
| "You've also got to see the wider context: Saudi Arabia and Iran are in a proxy war in Yemen. It is still very doubtful they can come to an agreement whether Russia supports a cut or not." | "You've also got to see the wider context: Saudi Arabia and Iran are in a proxy war in Yemen. It is still very doubtful they can come to an agreement whether Russia supports a cut or not." |
| 'US obstruction' | 'US obstruction' |
| However, John Kilduff, partner at New York energy hedge fund Again Capital, told the Reuters News Agency: "Putin coming out to say Russia will be part of the initiative has added another layer of credence to the speculation there will be a coordinated cut. | However, John Kilduff, partner at New York energy hedge fund Again Capital, told the Reuters News Agency: "Putin coming out to say Russia will be part of the initiative has added another layer of credence to the speculation there will be a coordinated cut. |
| "At some point, the market will call them on it and say 'show us the cuts'." | "At some point, the market will call them on it and say 'show us the cuts'." |
| In his speech Mr Putin also criticised unilateral sanctions, suggesting the US had blocked the expansion of more oil pipelines from Russia to Europe. | In his speech Mr Putin also criticised unilateral sanctions, suggesting the US had blocked the expansion of more oil pipelines from Russia to Europe. |
| "The authorities in certain countries have been telling businesses to close profitable projects, refuse to buy fuel supplied via the shortest possible routes and at attractive prices," he said. | "The authorities in certain countries have been telling businesses to close profitable projects, refuse to buy fuel supplied via the shortest possible routes and at attractive prices," he said. |
| "Such actions do nothing to increase the stability of global energy system and also of the global economy as a whole." | "Such actions do nothing to increase the stability of global energy system and also of the global economy as a whole." |