Oil prices surge after Putin remarks on freezing output

The Dollar Business Bureau

Oil futures surged on Saturday after Russian President Vladimir Putin remarks, who said that he believed Russia and other oil producing countries should freeze their output in order to stabilize the long-suffering prices of oil. 

The given statement is counter to what was said a day before by the oil minister of Russia, which appeared to have cast a doubt on the requirement for any freeze on production. 

Russian President and Energy Minister Alexander Novak were also quoted on Saturday as saying that oil production in Russia would rise this year. 

In New York, West Texas Intermediate (WTI) for October delivery increased by $1.28 to settle at $44.44 a barrel. 

In London, on the Intercontinental Exchange, North Sea Brent for October delivery rose $1.38, to close at $ 46.83 a barrel. 

The Organisation of the Petroleum Exporting Countries (OPEC) is slated to convene a meeting later this month in Algeria and prices of oil have fluctuated on the speculations that the organisation could agree for limiting the supply. 

In an interview with a leading news agency, Putin on Saturday said that he believed OPEC and Russia, which collectively produce 50 percent of the oil in the world, should decide to freeze the production and that any difference with Iran over this issue could be sort out. 

However, Iran has pledged to enhance its oil production to 4 million barrels a day, of pre-sanctions level.