Oil prices rose yesterday (February 3) after Russia stated its openness to speak with the Organization of the Petroleum Exporting Countries (OPEC) about output cuts.
Russia’s apparent willingness to enter into talks with OPEC appears to have revived hope amongst investors that the globe’s biggest oil producers could soon act to boost unstable oil prices.
Sergei Lavrov, the Russian Foreign Minister, said that Russia would meet with the organisation if there was a consensus among OPEC and non-OPEC members to do so.
This helped to bring up the price of oil yesterday, which had previously been set to continue the decline it had seen in the past two days.
Brent crude oil for April delivery LCOc1 saw a rise of 40 cents to $33.12 (£22.87) at 4:30 am Eastern Time, which was up from a session low of $32.30 (£22.30), while crude futures went from a session low of $29.40 (£20.30) to $30.34 (£20.95), which will be good news for oil companies like ExxonMobil and Royal Dutch Shell, the makers of Mobil Delvac SGO 75W90 and Shell Omala S2 G 320 respectively.
Speaking about the situation, PMV Oil Associates analyst Tamas Varga described the possibility of a meeting between Russia and OPEC as a “supportive factor” in the day’s oil price rises.
Despite this rise, many analysts believe that oil prices are set to fall even further in the coming year due to the amount of oil being made available on the market.