Putin's comments bolster global oil price

Putin said he could propose finalizing the plan when he meets Saudi Deputy Crown Prince Mohammed bin Salman at the Group of 20 summit (G20) in China later this week.

Putin's comments prompted traders to bet on a production freeze deal in coming weeks, which pushed oil prices higher on Friday.

US benchmark West Texas Intermediate (WTI) crude for October delivery gained $1.28 to settle at $44.44 a barrel on the New York Mercantile Exchange.

European benchmark Brent crude for November delivery rose $1.38 to close at $46.83 a barrel on the London ICE Futures Exchange.

Putin's comments came after Russian Energy Minister Alexander Novak a day earlier had appeared to cast doubt on the need for a freeze. Putin and Novak were both also quoted on Friday as saying that Russian output will rise this year.

Crude futures prices have fallen for four straight sessions this week on worries that a global supply glut is intensifying.

The US Energy Information Administration (EIA) said in its weekly report on Wednesday that US crude inventories rose by 2.3 million barrels to 525.9 million in the week ended Aug. 26, compared with analysts' expectations for an increase of 921,000 barrels.

The Organization of the Petroleum Exporting Countries (OPEC) is scheduled to meet in Algeria later this month and oil prices have been volatile on speculation that the cartel could agree to limit supply.

In an interview with Bloomberg published on Friday, Putin said he was confident that Russia and OPEC, which together account for half of the world's crude output, would agree to a freeze and that any differences with Iran over the issue could be overcome.

Iran has pledged to raise production to its pre-sanctions level of 4 million barrels per day.

"From the economic point of view, from the point of view of common sense, it would be right to find some kind of compromise," Putin told Bloomberg. "I am sure that everybody understands that."

Attempts to reach a similar deal in April collapsed when top producer Saudi Arabia resisted pressure from Iran to cede market share.

Editor: Priyambodo RH

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