LONDON, Nov 9: The price of oil surged more than a dollar a barrel here Friday, as Russia finally signalled it was ready to join Opec in reducing volumes to help put a floor under a market weakened by the global economic downturn.

Brent North Sea crude for December delivery climbed as high as 21.60 dollars a barrel at one point before ebbing back to 21.40 dollars by early afternoon — up 1.12 dollars on the overnight level.

Analysts said the sudden spurt coincided with remarks in Moscow indicating that after months of scepticism, Russia was finally coming around to the idea of joining the Organization of Petroleum Exporting Countries (Opec) in some form of supply restriction.

Opec itself is expected to slash its own output by as much as 1.5 million barrels from December when energy chiefs meet next Wednesday in Vienna.

But the 11-nation cartel has admitted that its actions alone will not be enough to rescue prices, which earlier this week fell below 19 dollars a barrel for the first time since July 1999. At that point, prices had fallen more than 30 per cent in the two months since the terrorist attacks on the United States.

Opec has tried to form an alliance with rivals such as Russia, Mexico and Norway so that its own output reductions — it has already cut production by almost 15 percent so far this year — do not merely result in other producers filling their boots.

Russia has hitherto said that while it is nervous about the impact of low oil prices on its budget, it was not contemplating a cut in output.

But on Friday, Prime Minister Mikhail Kasyanov said the half-dozen or so Russian oil majors were to brief the government early next week on possible export reductions, when the scale of the cuts would be discussed.

“The Russian government is encouraging Russian oil companies to cut output to help support prices,” said London-based broker Christopher Bellew in explanation of Friday’s sudden price rise.

As for Opec, it is widely expected to announce a cut of as much as 1.5 million barrels a day from December 1.

“The organisation is thinking about a cut between 1.0 to 1.4 million barrels per day... but the number could go as high as 1.5 million,” said a source at Opec headquarters in Vienna.

“Opec has to go ahead with the cut, but at the same time they will pray hard that the Russians come to their senses, and at least freeze production,” he said, before Russia’s comments.

Saudi Oil Minister Ali al-Nuaimi, the most influential minister within Opec, is to travel to Moscow, as well as Oslo, on the eve of the meeting.—AFP