Crude prices rose after Putin’s words about production freeze

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The statement of the Russian president Vladimir Putin about the necessity of oil production freeze led to a rise of world oil prices. The president also mentioned that this decision may become one of the factors that would help to settle the world crude oil markets, The Wall Street Journal reports on Friday citing a Saxo Bank commodity markets specialist Ole Hansen.

Earlier the same day, the Russian president told Bloomberg in an interview that an agreement of the world’s top crude producers about a freeze of the production level would be the right step in the current market situation. Putin also noted that the decision may include a compromise towards Iran.

World’s crude oil prices showed a slight upward motion right after the Putin’s statement about the production freeze. As on 5 p.m. (Moscow time) BFOE price reached US$46.80 a barrel at ICE. That is three per cent higher than the price at closing the previous session.

Last week market experts informed that OPEC’s discussion of a potential deal to freeze output pushed prices close to $50 a barrel. OPEC has already discussed such an option in April but did not succeed.