Russian companies back talks with OPEC on oil

It also cut its 2016 WTI crude price outlook to $37.75 per barrel from $56.44, and for 2017 to $54.25 from $63.31 per barrel. The country exported 99.7 million barrels of oil in December at an average price of $US29.288 a barrel, according to data released by the Ministry of Oil on Monday, the second highest export volume in 2015 but the lowest in dollar terms.

“Fears of a sharp slowdown in economic growth, particularly in China, are dragging down global stock markets from arguably overheated levels”, analysts at Energy Aspects said in a report.

“I don’t see any logic in OPEC cutting production while non-OPEC (countries) don’t cut”, Saleh said.

Oil prices bounced on Tuesday after senior OPEC and Russian officials stepped up vague talk of possible joint action to eliminate one of the largest surpluses in modern times.

The chairman of state oil firm Aramco, Khalid al-Falih, said he is continuing to invest in production despite deep spending cuts across most of the industry, and that markets would likely balance at a “moderate” oil price soon.

Light, sweet crude for March delivery recently rose 18 cents, or 0.6%, to $30.52 a barrel on the New York Mercantile Exchange.

The spectre of looming Iranian exports has Brent crude, the global benchmark, down about 16% this year as volatility in global markets adds to concern over brimming stockpiles.

“News of record-high oil supply from Iraq put pressure on prices”.

U.S.-based energy producer Hess Corp. said Tuesday that it expects to spend $2.4 billion on exploration and production this year, down 40% from last year and down 20% from the 2016 guidance the company gave in October.

The U.S., which is not a member of OPEC, is also expected to reduce oil output this year. “We consider the likelihood of any agreement between these parties as extremely low”, ANZ said in a note.

“It is vital the market addresses the issue of the stock overhang”, Secretary-General Abdalla El-Badri said at a conference in London, adding: “It should be viewed as something Opec and non-Opec tackle together”.

Georgi Kantchev and Summer Said contributed to this article.