Crude oil prices recovered from intraday losses after Russian Energy Minister Alexander Novak said his country is working out the mechanism for coordinating output strategy with OPEC and non-OPEC producers after a meeting with cartel officials in Vienna. A firming US Dollar applied de-facto pressure on prices on earlier in the day.
An OPEC technical committee meeting at the end of this month will pave the way for formal talks on production cut quotas at the end of November, following on from an agreement to cut output struck at an informal meeting in September. Russia will reportedly decide if it will join the price-boosting effort following next month’s gathering.
On-going negotiations may continue to be a source of headline-inspired in the day ahead as OPEC Secretary-General Mohammed Barkindo travels to Iraq to discuss production levels. The weekly set of inventory flow figures from is also due to cross the wires. Official DOE figures to be reported on the following day are expected to show a build of 557.38k barrels.