Crude oil futures pared gains yesterday after top producers Russia and Saudi Arabia confirmed they had agreed to co-operate on stabilising the oil market, including limiting output.
Brent crude futures for November delivery were up 44c per barrel at $47.27 (€42.38) a barrel in late London trade.
They earlier hit a session high of $49.40 in anticipation of the Russia-Saudi deal.
Saudi Arabia and Russia said on the sidelines of the G20 summit in China they had signed an agreement to set up a task force to review oil market fundamentals and to recommend measures and actions that would secure market stability.
Russian energy minister Alexander Novak said the two countries were moving to a strategic energy partnership and a high level of trust would allow them to address global challenges.
Saudi energy minister Khalid al-Falih told a UAE-based television channel he was optimistic about co-operation with other producers ahead of a meeting this month in Algiers, adding freezing production was not the only solution.
Saudi deputy crown prince Mohammed bin Salman told Russian president Vladimir Putin on the sidelines of the same summit that cooperation between the two countries would bring benefit to the global oil market.
“Verbal intervention was again needed to trigger a recovery towards $50,” senior ABN Amro economist Hans van Cleef said.
Iran, Opec’s third largest producer, has said it would only co-operate in talks to freeze output if fellow exporters recognised its right to fully regain market share.
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