Economy

Russian Federation not yet on board with OPEC production deal extension

Russian Federation not yet on board with OPEC production deal extension

Russia's comments on Monday, and remarks last week from Saudi Arabia, bolstered expectations the deal will be renewed.

Brent crude futures fell $1, or 1.6%, to settle at $62.29 a barrel.

U.S. West Texas Intermediate (WTI) crude futures were at $54.32 per barrel, 33 cents, or 0.6%.

Morgan Stanley has said that demand by major consumers including the United States, China, Japan, Australia, South Korea, Brazil, India, and Thailand has been notably weak-and those eight countries represent 48 percent of global oil demand.

Both ministers are due to meet colleagues from the Organization of Petroleum Exporting Countries and allied producers at talks in Vienna in the coming weeks to decide on the future of the deal.

He said while Opec was close to agreement, more talks were needed with non-Opec countries which had agreed effective this past January 1, to slash output by 1.2 million barrels per day (Mmbpd), which expires the end of this month.

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The energy ministers of both countries have been at pains to stress a common view on the crude market, saying Friday they'll continue to cooperate once production curbs expire, though Russian Federation is yet to commit to an extension of the deal as it weighs demands from its oil companies.

"We need to continue to monitor the situation and see what happens in June so we can take a balanced decision in July", says Energy Minister Novak.

Traders said crude prices were rising because of statements by OPEC's biggest producer Saudi Arabia on Friday saying that the group was close to agreeing extending supply cuts.

"Prices are finding support from the prospect of OPEC oil production remaining restricted beyond mid-year", said Carsten Fritsch, an analyst at Commerzbank.

In the United States, crude production has surged, rising to a weekly record at 12.4 million barrels per day, while crude stockpiles have climbed close to two-year highs, according to the Energy Information Administration's data last week.

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