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market | IST

Crude oil prices pare record gains amid doubts over Saudi-Russia output deal

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Crude oil prices fell on Friday, coming off their biggest one-day gains in the previous session after US President Donald Trump said he had brokered a deal between Saudi Arabia and Russia to cut output, but made no offer to reduce US production.

Crude oil prices fell on Friday, coming off their biggest one-day gains in the previous session after US President Donald Trump said he had brokered a deal between Saudi Arabia and Russia to cut output, but made no offer to reduce US production.
Brent crude futures fell 3 percent, or 9 cents, to $29.05 as of 0127 GMT while US West Texas Intermediate (WTI) crude futures fell 5.2 percent, or $1.32, to $23.98 a barrel.
Trump said he had spoken with both Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin on Thursday, and said he expected they would cut oil output by as much as 10 million to 15 million barrels per day (bpd).
Expectations of a production cut by 10-15 million bpd and participation by the United States in the deal asTexas, Canada may cut output led a sharp rally in the crude oil prices registering their best day in history.
US crude prices had surged 41 percent intraday before settling 25 percent higher. Brent crude prices rallied 18 percent to settle at $29.14 a barrel.
However, uncertainty looms over the distribution and timeline of cuts. Trump told reporters at the White House late on Thursday he had made no offer to cut US output.
Thus, crude prices slipped from highs due to lack of clarity on whether the US will participate in the production cut, analysts said.
Meanwhile, Saudi Arab has called for an urgent meeting between OPEC and Allies while the US President will meet US oil executives today.
Analysts said even if Russia and Saudi Arabia agreed to cut production by as much as 15 million bpd, that would not be enough to balance the market in face of a deep economic recession.
(With inputs from Reuters)