Crude oil rose after meeting between Saudi Arabia and Russia

World oil prices rose on Tuesday, with US crude oil hitting a one week high, and Brent crude oil offset some of its losses yesterday. Prices rose after Russia and Saudi Arabia, the world’s top oil producers, discussed extending the global production cut off after March 2018. .

By 09:30 GMT, US crude rose to 47.80 USD a barrel from the opening level of  47.36, USD hitting a record high of 47.85 USD since August 28 and a low of  47.34 USD

Brent crude rose to 52.50 USD a barrel from the opening level  52.26, USD and recorded a high level of 52.54 USD , and the lowest level of 52.07 USD.

US crude oil finished yesterday’s trading flat with little change, while Brent crude futures for November contracts lost 1.2 % in the first three-day loss.

MOSCOW (Reuters) – Russia and Saudi Arabia discussed an extension of a global production cut off agreement between OPEC and independent producers after March 2018, but no specific decisions were made, the TAS news agency reported on Tuesday, quoting Russian Energy Minister Alexander Novak.

OPEC and independent producers agreed in December 2016 to cut production by 1.8 million barrel per day  for six months, starting in January and ending in June, with the aim of reducing global stocks and rebalancing the market.

The deal was supposed to have expired in June, but as global stocks continue to rise above the five year average and the market rebalance is slowed, OPEC producers unanimously agreed with independent producers to extend the global deal until March 2018.

The Committee for Monitoring the Implementation of the Cuts recommended that the production reduction agreement be extended for a new period if necessary.

US gasoline futures fell 3.5 % to trade at 1.69 USD a gallon at the same price levels before Hurricane Hurricane hit the Gulf of Mexico area off the coast of Texas.

 Contracts on August 31 were   2.17 USD a gallon, the highest level in two years, after hurricane-induced flooding halted more than a quarter of the refining capacity in the United States.

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