Oil palm-related firms may be closely watched as higher crude oil prices could generate demand for palm oil for biodiesel production.
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After initial optimism, investors began to doubt the likelihood of a unified agreement to freeze production at a time when members of the Organization of the Petroleum Exporting Countries (OPEC) continued to prioritize market share.
Meanwhile, Kuwait and the United Arab Emirates on Monday welcomed an agreement by the world´s two biggest oil producers Saudi Arabia and Russian Federation to try jointly to stabilise oil prices.
Iran remained an obstacle to any production deal.
Mr Novak said the agreement, which might include attempts to limit oil output, was a “historical moment” between members of Opec, the oil producers’ cartel, and non-members such as Russian Federation. Iran refused to discuss the oil production freeze saying it was unwilling to “give up its historic production quota”.
But those gains have been slowly wiped away by a strong dollar – making oil more expensive for holders of other units – and uncertainty over OPEC member and key producer Iran’s participation in the talks. The favoured son of King Salman, MBS exerts great control over the Saudi economy, including plans to transform it through listing a stake in state oil company Saudi Aramco.
Ministers recognized the need to curb excessive volatility in the oil market, its negative impact on global economic growth and stability in the long term.
The UAE has welcomed the cooperation between Saudi Arabia and Russian Federation in the energy sector, especially in the area of oil. “What is the point of meeting in Algiers?” said one OPEC delegate from a region outside the Persian Gulf. For example, at April’s massively anticipated OPEC meeting about a freeze in production, Saudi Arabia refused to cooperate unless Iran joined in any production freeze, and, as a result the meeting ended up as a damp squib.
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The announcement came amid a flurry of diplomatic activity around the idea of curbing output. Oil’s rise was its the second bumper session in a row as the Saudi/Russia pact fanned speculation that major producers could strike a firmer deal in Algeria later this month. What the two nations do regarding oil policy has profound effects on the markets. In August, Khalid al-Falih said that a market intervention was not necessary, but that was followed up a few days later with a comment about how such an outcome would be “positive”.
