Russia says it supports OPEC plan to limit oil production

So far this month, Russian Federation has pumped crude and and a light oil called condensate at a rate of 11.2 million barrels a day, according to preliminary data from the Energy Ministry’s CDU-TEK unit.

Also according to Saudi Arabia, oil prices could still potentially touch the $60 level before the year ends considering this is the first agreement in eight years between the top world suppliers and exporters of crude oil in eight years. And here are three things that you should know about OPEC’s oil deal.

For the upcoming week we are expecting that the price of Brent crude oil will have upward support, but will not break through $53 this week. “The oil world needs realistic and fair prices”. The increase in North American oil production helped drag oil from $100 per barrel in 2014 to lower than $30 per barrel this year as markets moved in favor of the supply side. In fact, this has been tested many times in the past few months.

For months pressured by concerns of slack demand amid a global economic slowdown at a time of a glut in supply, US oil rose above $50 a barrel in NY last week for the first time since June.

Russian Federation has expressed full support for a proposed plan to freeze oil production as a way to support oil prices. This will be clear in the next few weeks. It hit an intraday high of $51.10, the highest level since June 9.

The meeting is now a key focus for the global oil market as traders try to anticipate the outcome of the next OPEC meeting. There is no other translation for this oil deal other than this. The minister’s first public comments since the Algiers accord of September 28 underscore the dramatic shift in Saudi strategy away from unfettered production, which will be formalized at the group’s next meeting on November 30 in Vienna.

An attempt by producers to freeze output in April failed as Saudi Arabia refused to proceed without the participation of Iran, which insisted on its right to restore output lost to years of worldwide sanctions.

His Algerian counterpart Nouredine Bouterfa said he expected to see “commitments” on cuts from non-OPEC oil producers at meetings in Istanbul this week.

Iran is increasing oil production after global sanctions were lifted from the country and refuses to a freeze or a cut in oil production.

Ministers from some of the largest oil-producing nations are gathering in Turkey this week to discuss ways to end a two-year supply glut.

It is very clear that Saudi-led OPEC is facing a delicate situation. But they also can do nothing, and result in oil prices falling back below $40/bbl.