Oil prices began the week on a positive note, as Saudi Arabia and Russia, the world’s largest producers, agreed to extend the historic OPEC deal till March 2018, The Sun reports.
In a joint statement to journalists on Monday, Khalid al-Falih, Saudi’s energy minister and Alexander Novak, said they would do whatever it took to curb oversupply. “There has been a marked reduction to the inventories, but we’re not where we want to be in reaching the five-year average,” Falih was quoted to have said at a briefing in Beijing alongside Novak.
“We’ve come to conclusion that the agreement needs to be extended,” he added. Immediately after the briefing, oil prices began an upward swing to a three week high, gaining nearly $2 on the barrel. Brent crude, the international benchmark for crude oil, gained around $1.53 to trade at $52.37 per barrel on the global market. US oil, or West Texas Intermediate (WTI) also soared by $1.43 to trade at $49.30 per barrel.