Brent crude prices rose to their highest in a year on Monday after Russia said it was ready to join a proposed deal to cap oil production in a bid to stem a two-year price slide in a move that boosted hopes that new oil finds in East Africa will be viable.
Global benchmark Brent crude futures LCOc1 reached the highest level since Oct. 12, 2015 at $53.22 a barrel at 1335 GMT, up $1.29 on Friday’s close.
Kenya, Tanzania, and Uganda even Ethiopia have struck crude oil deposits giving them hopes of balancing their budgets and boosting their trade balances. Kenya’s energy ministry permanent secretary last week said that Kenya needs oil prices to rise above $50 a barrel for the business to be profitable.
U.S. futures CLc1 also gained ground, reaching a four-month high of $51.10 a barrel.
Russian President Vladimir Putin said an output freeze or even a production cut were likely the only right decisions to maintain energy sector stability.
“Russia is ready to join the joint measures to cap production and is calling for other oil exporters to join,” Putin said, speaking at an energy congress in Istanbul.
The Organization of the Petroleum Exporting Countries (OPEC), of which Russia is not a member, aims to agree an output cut by the time it meets in late November. The goal is to cut production to a range of 32.50 million barrels per day (bpd) to 33.0 million bpd.