Oil reaches peak after reports of initial deal between Saudi Arabia and Russia By Investing.com

By Geoffrey Smith

Investing.com – Oil futures contracts rose to an intraday high after reports that Saudi Arabia and Russia agreed, in principle, to a deal to cut production.

At 12:06 p.m. (Brasilia time), Brent rose 2.65% to $ 33.66 a barrel, after previously hitting a high of $ 36.12, a 12% increase. US Oil Futures Contracts USA They rose 3.99% to R $ 26.08 per barrel, after reaching an increase of 11.4%, to US $ 27.95.

According to sources heard by The Wall Street Journal, Saudi Arabia would reduce its production by 4 million barrels per day in April from April, not to mention the basis of the deal. While the Russians would be willing to reduce production by 2 million barrels per day, above what was initially established by the Russian Ministry of Energy.

A source from the Organization of the Petroleum Exporting Countries (OPEC) and a Russian source heard by Reuters say the cartel and other producing countries will discuss production cuts of up to 20 million barrels per day (bpd) on Thursday, the equivalent of 20 % of global supply.

“It is a global agreement,” said the OPEC source. The source did not specify whether the United States would be involved, something that Russia and other OPEC producers have insisted on happening.

Another OPEC source and a second Russian source told Reuters that Russia and Saudi Arabia had been able to remove major obstacles to reaching a new agreement on cuts in oil supplies.

Reuters contributes to this story