The price of North Sea oil approached $ 45 a barrel Tuesday. The cause of the increase in the price of oil is unconfirmed reports that Russia and Saudi Arabia have agreed to freeze the production level.
The two countries have agreed to freeze production at current levels, according to the Russian news agency Interfax. The agency cites a diplomatic source in Doha, Qatar. Major oil-producing countries are to attend a meeting in the city on Sunday to discuss measures to get the oil price up.
The oil prices on Tuesday are the highest they have been in five months.
Iran, which has had a number of international sanctions removed after the agreement on a nuclear deal last year, has refused to curb growth in oil production. This has meant that other countries, including Saudi Arabia, have been leery of freezing production.
The news of a possible agreement on production freeze arrived simultaneously with the US authorities announcing a drop in oil production of 560,000 barrels per day in 2017. US production will remain at 8.04 million barrels per day.
Source: NTB scanpix / Norway Today