The much awaited stabilization of the global crude output can now happen after a joint statement and a possible agreement between top oil producers Saudi Arabia and Russia at the G-20 summit in China on Monday, said media reports.

According to Russian news agency Interfax, the joint statement stressed on the recognition by both Russia and Saudi Arabia about the need to contain excess volatility in the global crude oil market.

In order to ensure steady investment in the oil industry and to monitor the market and draft recommendations, both the co8ntries have reportedly agreed to form a working group, Interfax said. this working group is likely to hold its first meeting sometime next month.

Crude oil futures pared back slightly in the later part of the trading after they rallied heavily in the build-up to the announcement. However, at a little under $46 per barrel, WTI futures for October remained over 3 percent higher on the day.

According to Interfax, a production freeze would be one of the ways to stabilize global crude oil prices, Russian Energy Minister Alexander Novak reportedly said at the summit.

According to Interfax, an “historic moment” in relations between OPEC and non-OPEC members was how the announcement that was made on Monday described by Novak. While Russia is not a member of OPEC, Saudi Arabia is de facto leader of the Middle East oil cartel.

Primarily due to the fact that Saudi Arabia has been wedded to keeping output high to hold market share, in the past years and months, several attempts to boost crude prices by freezing OPEC’s output have fallen.

However, Iran has also refused to join forces with Saudi Arabia, Russia, Qatar and Venezuela in freezing output in February when the world oil manufacturing nations tried to curb oil output to enhance global crude prices and therefore Saudi Arabia is not alone in scuppering deals. This time around, to make successful a broader deal on oil production levels, Iraq and Iran’s cooperation will be key.

Prior to the commodities slump that began in July 2014, crude oil had traded above $100 per barrel. And despite a continuous string of rallies for WTI crude futures for October sharply this year, the prices still remain far below the levels above $100 per barrel.

Member countries of OPEC are scheduled to officially meet in Vienna in November even as the oil cartel is slated to hold informal talks in Algeria this month to form a basis for oil production enhancement freeze in an effort to rake up prices. Interfax said that on both the slated meetings, Russia’s Novak will meet with his Saudi counterpart, Khalid al-Falih.

Interfax said on Monday that implementation of technology in the energy and gas space would be done as a collaborative effort by Russia and Saudi Arabia as the countries have agreed to do so.

(Adapted from CNBC)