Meanwhile U.S. West Texas Intermediate crude reached $46.16 per barrel, the highest since July 15, before easing to $45.98, settling at 17 percent above its $39.19 monthly low from August 3.
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OPEC pumped 33.24 million barrels of crude per day in July, as the producer group added Gabon to its ranks, bringing the cartel to 14 members.
Russia’s energy ministry on Tuesday said it was making plans for a possible meeting with the Organization of Petroleum Exporting Countries (OPEC) in October, as the sector grapples with lower crude prices due to a global supply glut.
“Given the dismal track record when it comes to recent producer cooperation, we are not holding our breath for an eventual freeze in output and even less so for a much-needed reduction in production to help re-balance the oil market”, said French Bank BNP Paribas.
Iran’s apparent reservation prompted other OPEC members to be more apprehensive with some saying there would be no pact without Iran’s pledge-a longstanding condition set by Saudi Arabia and its Arab neighbors.
“While it is tempting to dismiss the OPEC chatter as a non-factor meant to talk up prices, we are also resigning to a momentum shift in which our technical indicators are flashing green lights in favor of further crude price rallies of at least a couple of dollars a barrel”, said Jim Ritterbusch of Chicago-based oil markets consultancy Ritterbusch & Associates. The total motor gasoline inventory fell 2.7 million barrels last week.
But volatility also looks certain.
Both contracts were down in Asian trade on Wednesday as investors booked some profits, but analysts said the decline was tempered by buying in anticipation that prices would still go higher.
A previous attempt to freeze output at January levels to support prices collapsed in April after Saudi Arabia said it wanted all producers, including Iran, to join the initiative.
Brent crude, the global oil benchmark, shed 1% to $48.75 a barrel on London’s ICE Futures exchange.
The strong USA dollar, rising USA crude oil rigs, and weak demand cues from Japan and Europe will likely continue to pressure crude oil prices.
However, some analysts have voiced doubts that a freeze deal would be reached, recalling that previous efforts have failed.
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MOSCOW/DUBAI Saudi Arabia is sending signals that it could boost its crude oil supplies in August to a new record level, overtaking Russian Federation, the world’s top oil producer, as it gets ready for tough talks next month for a global output freeze pact.
