Last Thursday, the prices of crude oil clawed back its losses after the release of reports that Russian Federation has accepted the necessity to reduce its output.
Besides, after their meeting, Brent oil price went up by 5%, which is $62,48 per barrel.
The West Texas Intermediate for January delivery decreased 0.52 US dollar to settle at 50.93 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery decreased 0.8 dollar to close at 58.71 dollars a barrel on the London ICE Futures Exchange.
"I explained to (Suarez) the results of the OPEC+ agreement on the stability of oil markets, which serves the interests of producers, consumers and investors and supports the global economy", he wrote. Speculation over whether the Organization of Petroleum Exporting Countries and its partners will curb output has gripped the market in recent weeks, causing volatility to spike.
Besides, investors widely expected output cut as OPEC, led by Saudi Arabia, plans to hold a meeting on December 6 to reverse falling oil prices amid possible supply surplus and softening demand. WTI was down 7 US cents to settle at 51.56 dollars a barrel, while Brent dipped 0.27 dollar to close at 60.21 dollars a barrel.
Novak told TASS earlier that the ministry was still undecided about its position on possible oil production cuts in 2019 under the Vienna Agreement.
The Alberta announcement came just hours after Russian Federation and Saudi Arabia agreed to extend their deal to manage the oil market into 2019, sending West Texas Intermediate prices up as much as 5.7 per cent.
At the end of last week, Putin said the credit was largely given to Saudi Arabia and Crown Prince Mohammed bin Salman that OPEC members have fully committed for the first time to reduction in production. An OPEC advisory committee suggested a 1.3 million barrel-a-day cut from October levels, according to a delegate.
Crude oil and other cycle-sensitive assets are likely to experience higher volatility as the meeting approaches and markets become more tense.
The contract closed the week Friday down 52 cents at $50.93 per barrel.
The country's energy minister said Monday that the move represents a "technical and strategic" change, Reuters reported, and was not politically motivated.
John Sfakianakis, chief economist at the Gulf Research Center, based in Saudi Arabia, said that a renewal of the deal would be healthy for global markets. "Moreover, demand-driven worries due to trade wars might subside, which should help lessen global growth concerns in the short term".