Russia and Saudi Arabia, the world’s two largest oil producers, have agreed to discuss measures to keep the oil market stable in the long term. Though there are still no specific details on the deal, Russian energy minister Alexander Novak has hinted that he preferred a production freeze for a month in the second half of this year.
On the other hand, Saudi Arabian energy minister Khalid al-Falih said freezing production is not necessary given the recent improvements shown by the market.
Prices of oil have hit an all-time-low in almost 13 years this year due to overproduction and lesser demand from the market. From as high as $110 a barrel 2 years ago, oil prices fell $27.67 a barrel at the start of 2016.
But prices have started to recover and the recent news of the impending deal bumped it by 1.6% to $47.56 a barrel.
Novak said that should the talk between Russia and Saudi Arabia push through, the agreement would be a “historic moment” between OPEC members and non-members such as Russia.
