Oil prices jumped as much as 3 percent on Monday, after Russia and Saudi Arabia both said a deal between the Organisation of the Petroleum Exporting Countries, OPEC, and non-OPEC members like Russia in curbing crude output was possible.
December Brent crude oil futures were down 78 cents, or 1.5 percent, at $52.36 a barrel by 2:38 p.m. ET (1838 GMT), more than a dollar off Monday’s one-year intraday high of $53.73.
U.S. crude futures settled down 56 cents, or 1.1 percent, at $50.79 a barrel, after closing on Monday at $51.35, the highest level since July 15, 2015.
Global oil supply could fall into line more quickly with demand if OPEC and Russia agree to a steep enough cut in production, but it is unclear how rapidly this might happen, the International Energy Agency said on Tuesday.
The energy ministers of Saudi Arabia and Russia intend to hold further consultations in Riyadh after the Istanbul meeting, the Saudi energy ministry said in a statement.
Igor Sechin, Russia’s most influential oil executive and the head of Rosneft, told Reuters in an interview his company will not cut or freeze oil production as part of a possible agreement with OPEC.
The previous day, Russian President Vladimir Putin said an output freeze or even a production cut were likely the only right decisions to maintain energy sector stability. Russian Energy Minister Alexander Novak said the base-case scenario for Russia would be to leave current output unchanged.
OPEC Secretary General Mohammed Barkindo said any deal to freeze oil production was likely to be reviewed after six months. OPEC is not interested in or targeting a specific oil price, Barkindo also said on Tuesday.
