Oil briefly plunged below $50 on Thursday amid fears of an emerging supply glut, before reversing course after Reuters, citing unnamed industry sources, reported that Russian Federation is considering cutting its oil output along with other members of the Oil and Petroleum Producing Countries (OPEC).
"Iraq will probably say the right things regarding the OPEC meeting, about constraining or reducing output or even just "expressing support" for new output cuts", said Michael Barry, director of research at consultant FGE in London.
"Most people agreed that we can not reduce immediately, it needs to be a gradual process like last time", said the source, who asked not to be identified as he is forbidden from speaking to the media. Another meeting with Russian oil companies was held on Tuesday. Lukoil, Tatneft, Surgutneftegas, Gazprom and Novatek did not immediately respond to a request for comment.
America, with OPEC and Russian Federation, seems to be working towards keeping oil in the $50 range globally, which means we can expect the local prices to stay at the current levels at least for some time.
The oil price "fell and then rose again but in my opinion, a level around $60 is quite acceptable, we are completely satisfied", he told an investment forum.
"It was also said that reducing by one sixth this time is a big ask", the source said.
Emphasizing the seriousness of the meeting, Kachikwu said his visiting colleague had a brief discussion with the vice president, Prof. Others could follow suit by emphasizing OPEC's long-standing position that it will keep the market stable by matching supply to demand.
Investors have anxious that Saudi Arabia would avoid confronting with the United States over issues including propping up oil prices, as U.S. President Donald Trump stood behind Salman over the murder of Khashoggi.
Possibly complicating any decision on oil output is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul last month. Trump has backed Saudi Crown Prince Mohammed bin Salman despite calls from many US politicians to impose stiff sanctions on Riyadh. The market sentiment has shifted from a 70 per cent expectation of a small production cut earlier this week to about a 56 per cent chance on Friday, CME Group said.
The price of oil has fallen by just over a fifth since the end of October and by almost a third over the past two months, in declines not seen since 2008.
He was also reported to have said that Russia's 2019 oil output is expected at the same level as this year but could be adjusted, depending on a deal between OPEC and non-OPEC members.