Crude oil is ripping higher after Putin says ‘Russia is ready’ to cap its production

Crude oil prices rose to their best levels of this year on Monday after more indications that major oil producers are willing to strike a deal on output.

The Organisation of Petroleum Exporting Countries (OPEC) agreed at an informal meeting last month to discuss capping output when it holds its formal meeting in November. Reuters reported that Russian President Vladimir Putin said he hoped OPEC reaches an agreement, while speaking at an energy congress in Istanbul.

“Russia is ready to join the joint measures to cap production and is calling for other oil exporters to join,” Putin said, according to Reuters.

Similar talks ended without a deal in April after Russia refused to play ball without the involvement of Iran, its geopolitical rival and OPEC’s second-largest producer.

The US and international benchmarks of oil prices crossed the psychologically key $50 per barrel threshold last week.

Brent crude, the international benchmark of oil prices is near a one-year high and up 3.2% to $53.60 per barrel at 10:03 a.m. ET. West Texas Intermediate crude oil futures, the US benchmark, is up 3.3% to $51.48.

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Nuria Pujol