PumpJan28

Oil prices steadied above $33 per barrel on Thursday, with the possibility of major shale producers joining hands to reduce production.

Brent crude was 18 cents higher at $33.28 a barrel, while the US crude increased four cents to $32.34 a barrel, Reuters reported.

Oil pipeline monopoly Transneft head Nikolai Tokarev said that officials in Russia have decided to talk to Saudi Arabia and other Organisation of the Petroleum Exporting Countries (OPEC) members about output curbs to strengthen oil prices.

Tokarev’s comments hinted at the possible cooperation between the oil cartel and Russia, which strengthened prices, helping it increase by more than 5%.

OPEC members such as Nigeria and Venezuela have called for a cut in output to shore up the prices.

"OPEC members such as Nigeria and Venezuela have called for a cut in output to shore up the prices."

Saudi Arabia deputy minister for company affairs Aabed A. Al-Saadoun said in Tokyo that supply glut worldwide is estimated by OPEC to be around two million barrels per day.

Due to this, the market may take time to rebalance and is expected to begin coming into balance in 2016.

Data released by the Energy Information Administration on Wednesday revealed that crude inventories in the US increased by 8.4 million barrels last week.


Image: Nigeria and Venezuela have called for cuts to bolster oil prices. Photo: courtesy of Feelart/ FreeDigitalPhotos.net