Oil prices ended lower after mixed response from Russian oil industry leaders toward an output-cut deal proposed by OPEC (Organization of the Petroleum Exporting Countries).
The West Texas Intermediate for November delivery on Tuesday lost $0.56 to settle at $50.79 a barrel on the New York Mercantile Exchange, while Brent crude for December delivery decreased $0.73 to close at $52.41 a barrel on the London ICE Futures Exchange, Xinhua news agency reported.
In the previous session, oil prices rallied nearly 3 per cent after Russian President Vladimir Putin said the country “is ready to join in joint measures to limit output and calls on other oil exporters to do the same.”
“In the current situation, we think that a freeze or even a cut in oil production is probably the only proper decision to preserve stability in the global energy market,” he said.
However, Igor Sechin, Chief Executive Officer of Russia’s largest oil producer Rosneft PJSC, said the company has no plans to cut oil production, according to media reports.
Saudi Arabia and other producers are unlikely to cut and higher prices would only bring US shale producers back into the market, Sechin said.
His words weighed on the market on Tuesday.
Oil prices had advanced over 11 percent since the Organization of the Petroleum Exporting Countries reached a deal last Wednesday to cut crude output for the first time in eight years.
The group’s oil ministers are expected to hammer out the final details of an agreement at their next official meeting on November 30 in Vienna.