Economy

Oil prices up as US, Russia set to discuss oil market

It is unlikely for Moscow to break bread with Washington since it struggles to maintain market share against US shale

Ovunc Kutlu   | 31.03.2020
Oil prices up as US, Russia set to discuss oil market

ANKARA 

Crude oil prices were up to start Tuesday on a higher note as the U.S. and Russia are planning to discuss the global oil market and the low price environment.

International benchmark Brent crude was trading at $24.57 per barrel at 0608 GMT for a 4.7% gain after it closed Monday at $23.46 a barrel.

American benchmark West Texas Intermediate (WTI) was at $19.57 a barrel at the same time for a 6.2% increase after ending the previous day at $18.42 per barrel.

U.S. President Donald Trump and Russian President Vladimir Putin have agreed during a phone call on Monday to have energy officials start discussing the way to balance the global oil market, Kremlin announced.

The two leaders exchanged opinions about the low price environment in the global oil market and agreed that their respective ministries of energy should hold consultations.

The shale oil revolution in the U.S. that started in 2008 has helped the country to surpass Russia in crude oil output in November 2018 when it became the world's largest crude oil producer.

Russia, which allied with Saudi Arabia-led OPEC in December 2016, has cut its crude oil production with the organization three times since, to support prices.

To mitigate the coronavirus-related low demand, Russia met with OPEC members on March 6 to further reduce the collective output of the group known as OPEC+, however, the failure of an agreement pushed crude prices to their lowest levels in 17 years.

It is unlikely for Moscow to break bread with Washington in the oil market since Russia struggles to maintain market share against U.S. shale oil producers and OPEC heavyweight Saudi Arabia in the global oil market.

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