Brent crude oil hits 12-month high of more than $50-barrel

oil-50-barrelCrude oil prices jumped as much as 3% today with Brent hitting a 12 month high of $53 .73 after Russia said it was ready to join OPEC in curbing crude output.

Russian President Vladimir Putin said an output freeze or even a production cut were the only decisions likely to maintain energy sector stability.

He told an energy industry conference in Turkey that “Russia is ready to join the joint measures to cap production and is calling for other oil exporters to join.”

OPEC, the Saudi-dominated Organisation of the Petroleum Exporting Countries – aims to agree on cutting about 700,000 barrels per day, bringing its output to 32.5-33.0 million bpd by the time it meets in Vienna for its policy meeting on 30 November.

This would be OPEC’s first output reduction in eight years and comes two years after prices crashed from highs above $100 a barrel. OPEC has also asked Russia and other non-members to join in making cuts.

Brent crude lost some of its earlier gains to close the day in London at $53.18-barrel.

However, investment and capital expenditure in the ageing North Sea basin is not expected to increase unless crude oil prices rise considerably further – and remain – at about $80-barrel at least.

  • Meanwhile, subsea equipment specialist Ashtead Technology has appointed Graeme Booth, previously with Subsea 7, as technical support leader in Aberdeen.

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