Russia reaffirms openness to reaching an agreement with OPEC

Russia is open to an accord to freeze its output of oil, the country’s top-tanking oil official said.

“We are cooperating in the framework of consultations regarding the oil market with OPEC countries and producers from outside the organisation, and are determined to continue dialogue to achieve market stability,” Russian energy minister Alexander Novak said, Asharq al-Awsat reported on Monday, according to Reuters.

"We are ready to achieve the widest possible level of coordination... and put in place joint measures to achieve oil market stability, with the condition that these measures will not be for a limited period of time."

His comments came ahead of the International Energy Forum which was to be celebrated on 26-28 September, in Algeria.

OPEC member countries were expected to hold informal discussions on the possibility of agreeing to an oil output freeze at the venue.

In remarks to the Saudi Press Agency on 14 August, Saudi Arabia’s Minister of Energy, Khalid Al-Falih said: “We are going to have a ministerial meeting of IEF in Algeria next month, and there is an opportunity for OPEC and major exporting non-OPEC ministers to meet and discuss the market situation, including any possible action that may be required to stabilize the market.”

"[...] With Iran at or near its short-term capacity [a deal to freeze output] is not out of the question," analysts at SocGen said in a research note sent to clients.

Nevertheless, an agreement would only serve to bolster sentiment, they added, because Russia, Iraq and Iran were "maxed out or close to it" and Saudi output would diminish anyhow following its seasonal peak in Summer.

"So a freeze would not have any impact on actual crude supply."

As of 11:15 BST front month Brent crude oil futures were edging 0.255% higher to $47.09 per barrel.