Russia Wants To Freeze Oil Output...At Its Historical High Level

The price of Brent crude hit a 52-week high of $53.73 a barrel in London after Russia's government appears to be cooperating with OPEC's largest member, Saudi Arabia, in taking actions to limit oil supply and encourage higher oil prices.

According to Bloomberg, Russian President Vladimir Putin confirmed his government's position while speaking at the World Energy Congress in Istanbul.

"Russia is ready to join in joint measures to limit output and calls on other oil exporters to do the same," Putin said. "In the current situation, we think that a freeze or even a cut in oil production is probably the only proper decision to preserve stability in the global energy market."

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Bloomberg noted that Russia has pumped crude oil and a light called called condensate at a rate of 11.2 million barrels a day - a pace that if continued would mark a post-Soviet record high.

The government also suggested that any agreement would involve a freeze in production at current levels and not cutting back.

OPEC has already reached an agreement in principle in late September to limit its oil output to a range of 32.5 million to 33 million barrels a day, which marks a decrease in output from around 33.75 million barrels a day. A formal OPEC meeting to discuss the details of the cutback has been set for November 30.

In the meantime, oil ministers from Saudi Arabia and other key OPEC members will meet with non-OPEC nations including Russia and Azerbaijan this week to talk about wider cooperation.