Commodity Blog

Prices for crude oil jumped today on an announcement of a joint statement from Saudi Arabia and Russia. Insiders told Reuters that the statement is going to be made during today’s Group of Twenty meeting and will call for cooperation to support the oil market. Additionally, there were reports that Russia is going to attend the meeting of the Organization of Petroleum Exporting Countries in November.

Yet analysts think that crude will be hard-pressed to keep its rally as chances for cooperation do not look high. Major oil producers are going to meet this month to talk about a cap on oil production, but most experts are skeptical and do not believe that the meeting will end with any significant result. In particular, Iran, which is at odds with Saudi Arabia, is likely to cause problems as it wants to ramp up its production to pre-sanctions levels.

October futures for WTI crude oil climbed 2.52% to $45.56 per barrel as of 10:34 GMT on NYMEX today. Brent for delivery in November jumped 2.71% to $48.10 per barrel on ICE.

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