Brent extends revenues after Saudi Arabia and Russia sign pact
On Tuesday, crude prices extended their revenues, buoyed after top producers Saudi Arabia and Russia agreed to cooperate on stabilizing the crude market, though a lack of immediate action to rein in production capped profits.
In London, November delivery Brent crude futures gained 12 cents, being worth $47.75 per, having settled up 80 cents on Monday.
On Monday, the global benchmark hit a near one-week peak of $49.40 after the Russia-Saudi news, though since pared revenues after Saudi Energy Minister Khalid al-Falih told there was no need now to freeze output. He added that freezing production happened to be one of the preferred scenarios.
October delivery NYMEX crude futures didn’t settle on Monday because of American Labor Day holiday. It grew as far as $46.53 on Monday, reaching the highest value since August 30.
Russian Energy Minister Alexander Novak told Saudi Arabia as well as Russia appeared to be moving towards a strategic energy partnership. This high level of trust would enable them to address global challenges.