Why Did Crude Oil Spike on Monday, October 10?

“We hope that at the OPEC meeting in November, the idea will be embodied in an official agreement, giving a positive signal to the markets and investors”.

We are “ready to join in joint measures to limit output and calls on other oil exporters to do the same”, Putin said.

The cartel agreed a cap on output at the end of September and the oil price has risen steadily since then, adding a further 3% yesterday to take it to its highest level since October a year ago.

“Why should we do that”, he asked, adding that Rosneft would not be part of any agreements between OPEC and oil-producing countries outside the cartel to throttle production.

Saudi Arabia said on Monday it was “not unthinkable” that the price of crude oil could surge to $60 a barrel by the end of the year but warned against drastic production cuts that might shock markets.

Smith predicts oil prices will experience limited upside from current levels; Goldman believes if a deal is reached but its impact is offset by an increase in other sources of supply, USA crude will hold around $52.50 per barrel next year – but that no deal will send prices to $43 per barrel. OPEC is scheduled to meet in November to hash out details of the agreement.

Oil has rallied than 13 per cent in less than two weeks since Opec proposed its first production curbs in eight years.

It was the highest level reached since October 2015, when it was at $54.

There have been several attempts in the past for Russian Federation and OPEC to join forces to stabilize oil markets.

The IEA forecast a decline of 900,000 bpd in non-OPEC output in 2016 to 56.6 million bpd, and expects a rise of 400,000 bpd in 2017.

Falih said Saudi Arabia would be prepared to deal with whatever price may emerge. “The difference is that the market forces have shifted significantly between 2014 and now”.

Eulogio Del Pino, the petroleum minister for cash-strapped Venezuela said he preferred a deal to extend for a full year in order to include peak output periods of different oil producers.

Energy ministers from major oil producing countries, including Russian Federation and Saudi Arabia are expected to hold meetings during the conference this week to hammer out a tentative agreement to limit oil supplies.

The China National Offshore Oil Cooperation (CNOOC) can see profits at barrel prices above $41 a pop on average – a figure nearly 40 percent higher than the break-even point of select Middle Eastern outlets who can still viably produce in a $25 a barrel market.

Any deal would initially be applied over six months and then reviewed, OPEC Secretary General Mohammed Barkindo said. More good news from Istanbul will be supportive for prices.