NEW YORK CITY – Crude oil prices jumped as much as 3% on Monday, with Brent hitting one-year highs after Russia said it was ready to join OPEC in curbing crude output, and Algeria called for similar commitments from other non-OPEC producers.
According to Reuters, Brent crude hit its highest level since Oct. 12, 2015, reaching $53.73/bbl before paring gains to trade at $53.18/bbl.
US West Texas Intermediate crude rose its highest since June 10 at $51.60/bbl, before easing back to $51.33/bbl, up $1.52, or 3%.
Russian President Vladimir Putin said an output freeze or even a production cut were likely the only right decisions to maintain energy sector stability. “Russia is ready to join the joint measures to cap production and is calling for other oil exporters to join,” Putin was quoted to say.
OPEC leaders have said that they aim to cut about 700,000 b/d, bringing its output to 32.5-33.0 MMb/d by the time it meets in Vienna for its policy meeting on Nov. 30. It will be OPEC’s first output reduction in eight years, and comes two years after prices crashed from highs above $100/bbl. OPEC has also asked Russia and other non-members to join in making cuts.