Russia, the world’s top oil producer, is consulting with Saudi Arabia and other producers to achieve oil market stability, Energy Minister Alexander Novak said, adding that the door is still open for more discussions on freezing output levels if needed.
Advertisement
The oil price reversed losses and had its best week in months.
“If we’ve learned anything about the oil market, it is that sentiment is extremely fragile”, said Michael Tran, director of energy strategy at RBC Capital Markets in NY.
“Even though it seems unlikely. the market is still pricing it in and we see prices moving slightly higher”. Prices climbed 6.4 percent last week as Saudi Arabia signaled it’s prepared to discuss stabilizing markets at informal OPEC discussions next month.
Futures slid as much as 1 percent in NY after climbing 12 percent the previous four sessions following comments from Saudi Arabia that the country is prepared to act to stabilize markets.
A monthly report from the Organization of the Petroleum Exporting Countries showed Saudi Arabian oil production was at almost 10.5 million barrels per day in July – a record high, above peak levels seen the same time a year ago.
Meanwhile, crude oil for September delivery on the New York Mercantile Exchange rose 7 cents, or 0.15%, to trade at $45.81 a barrel after rallying to $45.93 in the prior session, the most since July 21.
On the ICE Futures Exchange in London, Brent oil for October delivery inched up 6 cents, or 0.12%, to trade at $48.41 a barrel by 07:56GMT, or 3:56AM ET.
“Crude oil rose to a four-week high as speculation continued to mount that OPEC would discuss a potential cap on production at an upcoming meeting between the members of the group”.
Iran’s crude exports to South Korea rose in July to almost four times the level of a year ago, and 5.9 percent higher than the previous month, after global sanctions were lifted on Tehran’s disputed nuclear program.
Any agreement to curb production would help rebalance the crude oil market, where output has been running ahead of demand.
Crude prices were sitting lower earlier on Wednesday following a report that Saudi Arabia plans to boost its production in August to a record level.
Advertisement
Anxious over the Organisation of the Petroleum Exporting Countries, OPEC, agreement to cut oil production, the Minister of State for Petroleum, Dr. Ibe Kachikwu, said he believed that engagement with the 70 percent oil producers might have impact.
