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![Russian Energy Minister Alexander Novak called the agreed cuts "historic" [Xinhua]](http://thebricspost.com/wp-content/uploads/2016/10/253531504_8-e1476896172452.jpg)
Russian Energy Minister Alexander Novak called the agreed cuts “historic” [Xinhua]
At press time International Benchmark Brent crude was trading at $56.75 a barrel – a rise of 4.45 per cent since markets closed last week.
US Benchmark West Texas intermediate also went up 4.7 per cent to $53.92 a barrel.
Non-OPEC oil producing countries agreed to cut output by 558,000 barrels a day with the bulk of the cut falling on Russia, one of the world’s largest energy exporting heavyweights.
Russia agreed to cut 300,000 barrels per day silencing fears among some energy analysts that it would not live up to its commitment made several months ago by Russian president Vladimir Putin.
“This is truly a historic event,” Russian Energy Minister Alexander Novak told reporters.
“It is the first time that so many oil-producing countries from different parts of the world have gathered in one room to accomplish what we have done.”
A number of experts believe that given the recent cuts, oil prices could rise to $60 and beyond.
A report by Goldman Sachs and other investment firms such as Morgan Stanley in May also seemed to indicate that demand for oil would increase at a greater pace next year and and could help stabilize prices between $50 and $60 a barrel.
UAE Minister of Energy Suhail Mohammed Al-Mazrouei expects oil prices to fall into correction and steadily rise in 2016 due to increased demand.
The BRICS Post with inputs from Agencies
