Oil prices soar to $48 amid OPEC-Russia freeze talks

Crude oil prices opened on Monday at new highs as the Organisation of Petroleum Country (OPEC) and Russia continue to speak on a possible production freeze.

Brent crude, the international benchmark for crude oil, was trading at $47.59 per barrel as at 11am on Monday, while the West Texas Intermediate (WTI) was going for $44.74.

Last week, Khalid al-Falih, Saudi Arabia’s energy minister, said the oil-rich country would take all necessary action towards stabilising the oil market.

Alexander Novak, Russia’s energy minister, corroborated al-Falih’s claims and said Russia was cooperating with Saudi on stabilising the market.

“With regard to the cooperation with Saudi Arabia, the dialogue between our two countries is developing in a tangible way, whether in the framework of a multi-party structure or on a bilateral level,” Novak was quoted as saying.

“We are cooperating in the framework of consultations regarding the oil market with OPEC countries and producers from outside the organisation, and are determined to continue dialogue to achieve market stability.

“We are ready to achieve the widest possible level of coordination… and put in place joint measures to achieve oil market stability, with the condition that these measures will not be for a limited period of time.”

Oil prices have been on the rise since al-Falih’s speech, but rose beyond a-month high on Monday after Novak’s comment.

OPEC members are expected to meet in Algeria, later in September, to decide on a possible output cap.