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Early Tuesday, Bloomberg came out with the news, relying on the Arab News, which discusses the details of the latest phone call between Saudi Arabia’s Crown Prince Mohammed Bin Salman and Russian President Vladimir Putin. Both the countries, namely Saudi Arabia and Russia, are part of the drive that includes the Organization of the Petroleum Exporting Countries (OPEC) and allies, which in turn makes them discuss oil production in their latest talks, per the news.

The report also highlights the upcoming OPEC+ compliance meeting, up for October 19, as well as a full ministerial meeting, scheduled for January 2021, as the key short-term catalysts. While the immediate meeting is less likely to move the markets, the anticipated decision on whether to cut production from nearly 8 million barrels a day (bpd) to 6 million bpd becomes crucial to watch at the start of 2021.

Market implications

Although both the national leaders highlighted the need for further pressure on other members to deliver promised output curbs, global oil markets seem to pay a little heed to price-positive news.

The reason could be spotted from the fears of further worsening in the coronavirus (COVID-19) and a delay in the vaccine.

That said, WTI stays depressed near $40.35, down 0.15% intraday, by the time of the press.