Oil futures jump on Russian, Saudi deal to balance market

News that Russia and Saudi Arabia had agreed to work together to stabilise world oil prices sent crude futures sharply higher.

An agreement was reached at a meeting on 4 September between Saudi deputy Crown prince Mohammad bin Salman and Russian president Vladimir Putin.

As of 1048 BST front month Brent crude oil futures were up by 4.27% to $48.82 per barrel on the ICE. West Texas Intermediate crude oil futures were higher by 3.62% to $46.05.

The two countries would create a working group to monitor the oil market and draft recommendations to ensure its stability, Interfax reported, citing a joint statement.

Both countries recognised the need to contain excess volatility in the oil market.

Their new working group would hold its first meeting to discuss cooperation in the oil and gas arena in October.

Russian Energy minister Alexander Novak and Al-Falih would meet in Algeria in October and in Vienna in November.