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Oil Rises on Saudi-Russian Alliance Talk After Market Hesitates

  • It may be 2019 before the oil market re-balances: Al-Falih
  • U.S. crude stocks are seen dropping 2.5m bbl last week: Survey
Bloomberg business news
Saudi Oil Minister Khalid Al-Falih and Russian Oil Minister Alexander Novak discuss the OPEC production cuts.(Source: Bloomberg)
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Oil closed higher after Saudi Arabia and Russia signaled production cuts may be extended into 2019, initially worrying traders that their efforts aren’t working.

Futures rose 0.2 percent on Monday after toggling between gains and losses. Producers should keep limits on output through this year as it may be 2019 before supplies sync with demand, Saudi Arabian Energy Minister Khalid Al-Falih said in a Bloomberg television interview with Russia’s Energy Minister Alexander Novak. Russia is prepared to prolong its alliance with OPEC even after their accord expires at the end of 2018, Novak said.