– This is the script of CNBC's news report for China's CCTV on June 7, Wednesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
Russian Energy Minister Alexander Novak plans to meet his Saudi counterpart Khalid al-Falih in the Kazakhstan capital of Astana later this month, Novak told reporters on Tuesday.
He also said that the oil deal between OPEC and some non-OPEC nations, including Russia, to restrict production should continue to be implemented despite the recent diplomatic row between some Gulf nations, including Saudi Arabia, and Qatar.
"Agreement should continue to be fulfilled, nothing is harming it," Novak said. He added that Russia was not planning to call any extraordinary meeting with OPEC over Qatar.
Therefore, oil prices rebouded on the news. WTI futures settled up 1.7 percent at $48.19 per barrel Tuesday, but slid in late trading after API reported a large build of 4 million barrels in gasoline supply.
Now, markets also continued to digest the news that Saudi Arabia and other countries in the Middle East had severed diplomatic ties with Qatar. During Monday's Asian trading session, oil prices went up initially after the news, but tumbled during the following US trading, as investors started to worry about the future of OPEC's proudction cut deal.
[AXEL MERK, Merk Investments President and Chief Investment Officer] "Certain safe assets, gold for example, are rising quite substantially, but yet the S&P is moving sideways as these days as it slightly down only. The only way I can imagine to explain it is that its the buy biden deep mentality that we are at the end of the bull market, noboday wants to miss out a rally so when the markets come down, they buy it again."
Kuwait says that Qatar still supports OPEC output cuts.
However, to further calm the market, OPEC and Russia will have to continue to show their determination of the production cut extension, according to experts.
Meanwhile, geopolitical risks, along with other risk events has been significantly bolstering gold prices.
Gold held steady above its highest in seven weeks overnight, supported by a weaker U.S. dollar ahead of key political and economic events that are expected to stoke bullion's safe-haven appeal.
These events include the British election, a European Central Bank meeting where policymakers may take a less dovish stance, and former FBI director James Comey's Senate testimony all set for Thursday, market participants will be wary of taking big positions.Stocks closed lower Tuesday, and some late-day action could be a factor for Wednesday's trading.
[AXEL MERK, Merk Investments President and Chief Investment Officer] "Certain safe assets, gold for example, are rising quite substantially, but yet the S&P is moving sideways as these days as it slightly down only. The only way I can imagine to explain it is that its the buy biden deep mentality that we are at the end of the bull market, noboday wants to miss out a rally so when the markets come down, they buy it again."
CNBC's Qian Chen, reporting from Singapore