Putin's oil pledge sends price to one-year high

Another concern for businesses as energy costs could soon be rising once again...

Vladimir Putin

Image: Pavel Golovkin / AP/Press Association Images

Shares in some of the world’s leading oil stocks such as Royal Dutch Shell Exxon gained as much as 3% in value on Monday as Russia agreed to join OPEC in limiting supply.

Brent crude oil hit its highest level since last October, reaching $53.73 a barrel. Elsewhere, the $1.54 jump in the benchmark West Texas Intermediate (for November delivery) on the New York Mercantile Exchange saw it close at $51.35 a barrel, its highest level since July 2015.

The gains came as Russian President Vladimir Putin said that his country – which is the world's second biggest oil producer – was ready to join OPEC in curbing oil output.

Putin told the World Energy Congress in Istanbul:

"In the current situation, we believe a freeze or a cutting of the production of oil is the only way to preserve the stability of the energy sector and accelerate a rebalancing of the market.

"Russia is prepared to join joint measures limiting production and calls on other exporting countries to do the same."

Putin added that if the trends continued, a global shortage in oil would give rise to "unpredictable jumps" in prices.

In September, OPEC members voted to cut production for the first time in eight years.

OPEC aims to agree to cut about 700,000 barrels per day at its policy meeting at the end of November, bringing its output to 32.5-33 million barrels per day.