Saudi, Russia agree to freeze oil output; talks with Iran to follow

Oil ministers from Saudi Arabia, Russia and several key OPEC members agreed on Tuesday to freeze oil output after their meeting in Doha, news agencies reported.

Freezing output at January levels— which were near record highs— will be "adequate" as the kingdom still wants to meet the demand of its customers, Saudi oil minister, Ali Al-Naimi said in Doha after talks with Russian energy minister, Alexander Novak.

The deal is contingent upon other oil producers joining in, which will be addressed tomorrow as Venezuelan oil minister Eulogio Del Pino meets his counterparts from Iran and Iraq in Tehran for discussions.

“This deal would simply validate the excess production that is already taking place. This might be better than a further increase, but it is not the output cuts that some in the market have been hoping for,” Julian Jessop, head of commodities research at the London-based consultancy Capital Economics said in a note.

Qatar, which holds the rotating presidency of OPEC this year, was also present. Its energy minister, Mohammad bin Saleh Al-Sada, said the move would help stabilize the oil market.

Brent crude is now up 1.38 percent at $33.82 while Nymex WTI is up 1.12 percent at $29.77.