Crude Oil Breaks Down Streak as Russia Backs Output Freeze

Crude oil prices snapped a five-day losing streak after Russian President Vladimir Putin said he supports an output freeze deal coordinated with OPEC producers. The comments mark yet another about-face in Russia’s position on a supply restriction after Energy Minister Alexander Novak said such a deal was not necessary just a day before the President spoke. Putin argued that any output accord should include flexibility for Iran as it works to rebuild capacity to pre-sanctions levels.

Looking ahead, output restriction hopes may continue to be supportive in the near term following news that Russia and Saudi Arabia agreed to work together to ensure oil market stability on the sidelines for the G20 summit in China over the weekend. Meanwhile, Iran‘s Mehr news agency reported that Oil Minister Bijan Namdar Zanganeh will meet OPEC Secretary-General Mohammed Barkindo this week to discuss implementation of a potential supply-side agreement, suggesting Mr Putin’s proposed framework may be gaining traction.