Saudi Arabia offering to cut production in a sign of good faith after they lowered expectations for a deal in Algiers this week. Saudi Arabia says they are ready for any outcome and there is talk that if OPEC can come to an agreement, they could still formalize this meeting. OPEC negotiations are heating up as the cartel members look to solidify a deal to restrain oil output.
Saudi Arabia has offered to reduce oil production if rival Iran agrees to cap its own output this year, in a major compromise ahead of talks in Algeria next week, four sources familiar with the discussions told Reuters.
The price of crude oil has been caught in one of its most volatile couple of weeks in months after Oragnization of the Petroleum Exporting Countries (OPEC) and rival Russia hinted they may discuss a possible output freeze, as demand slows and a global surplus becomes more entrenched.
The bulls are back and the bears are in trouble. The crude oil market enters bull market territory just 3 weeks after dipping into bear land. It looked like a classic short squeeze ahead of the September crude oil expiration and it is clear some traders had it all wrong.
OPEC delegates say comments from top exporter Saudi Arabia, which two years ago led the group to drop its historic role of supporting crude prices, are a change in tone and a sign the kingdom is looking - verbally for now - to prop up the market.
There are more signs that the fundamentals are changing for crude oil and natural gas. Not only has Saudi Arabia raised prices for its oil in a sign that they have confidence they can maintain market share, but natural gas had its best move all year last week.
Saudi Arabia aims to create the world's biggest sovereign wealth fund, a $2 trillion behemoth that can throw its weight around global markets, but the fund's growth abroad is likely to be slowed by its responsibility for aiding the economy at home.