Oil extends rally on prospects OPEC could act to counter low prices

“Such negotiations to freeze or curb [oil extraction] are not conducted directly with OPEC as it is”.

“Some traders still think about the chances of an OPEC plus Russian Federation production cut and close their short positions”, he said, according to Trade Arabia News.

No details were available regarding the content of the agenda, although a proposal from Venezuela to freeze or otherwise curtail production at current levels was thought likely to be broached. President Vladimir Putin’s key ally, the head of state oil major Rosneft Igor Sechin – who had long spoken against the cuts – said last week it would make sense for all producers to remove around 1 million barrels per day from the market.

Oil prices are on the rise ahead of a much anticipated meeting between Saudi Arabia and Russia’s energy ministers.

Brent crude futures were up 81 cents at $34.20 a barrel by 09252 GMT, having fallen from an earlier peak of $35.55, the highest price since February 4.

The price crash has crippled some economies that depend heavily on oil sales for income.

“With Japan s Nikkei closing up more than seven percent higher and European stocks also coming back strong, the market either expects to see more Bank of Japan monetary stimuli and/or is more hopeful that oil prices have bottomed out”, added Razaqzada. Nigeria has called for an emergency OPEC meeting to talk about cutting production ahead of the cartel’s scheduled gathering in June in Vienna.

He also says the deal is contingent on other oil-producing nations agreeing to the freeze and that Iran “is unlikely to given it has only just returned to the market after sanctions were lifted”.

Oil prices have jumped back above $30 a barrel, reacting to another wave of speculation that the world’s biggest exporters may be hatching a plan to cut supply.

He said he hoped other producers would adopt the proposal, while Venezuela’s Oil Minister Eulogio Del Pino said more talks would take place with Iran and Iraq on Wednesday.

USA benchmark West Texas Intermediate for March delivery climbed 57 cents to $33.01 per barrel from Friday s closing level.

This is a rare meeting between Saudi Ali Al-Nuaimi and Russian Alexander Novak – whose countries are among the largest producers of crude in the world- since oil prices fell to lose up 70% of their value since mid-2014. It could become the first joint OPEC and non-OPEC deal in 15 years, aimed at tackling a growing oversupply of crude and helping prices recover from their lowest in over a decade.