OPEC and Russian Federation have reached a framework agreement to extend oil production cuts through end of this year, although both sides are working out crucial details, Bloomberg reports.
An understanding had also been reached that an announcement should be made at that OPEC meeting, scheduled for 30 November.
Russian Federation said on Friday it is ready to support extending a deal among oil producers on cutting output, less than a week before OPEC meets in Vienna to discuss policy, although it has yet to say how long it should be for.
Traders expect that OPEC next week will extend its supply quota plan through 2018 in hopes of re-balancing the oil market and driving prices north of $70 a barrel.
Russian Federation is ready to discuss prolonging the cuts at next week's meeting, Energy Minister Alexander Novak told reporters in Santa Cruz, Bolivia earlier Friday. Saudi Arabia has been pushing for an extension for nine months until the end of 2018, a position President Vladimir Putin had suggested in October that Russian Federation backed. Opinions differ, with some observers arguing the world's largest producer would be better off without the cut and others countering with the fact that Russian Federation and Saudi Arabia's rather new and fragile alliance may not be able to withstand Moscow bowing out of the pact.
Despite the report, as of 1531 GMT front month Brent crude oil futures were slipping 0.13% to $63.47 a barrel on the ICE.