Members of the Organization of the Petroleum Exporting Countries are due to meet in Algeria on the sidelines of the International Energy Forum (IEF) on September 26-28, and are expected to seek to revive a global output freeze deal.
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A freeze deal between members of the Opec and other producers was proposed in February but a meeting in April ended with no final accord.
Top oil executives do not see an end to the volatility in the oil markets for the foreseeable future. He says the world needs oil above $50 per barrel to achieve a balanced market, and raised the prospect of Saudi Arabia resuming its role of balancing supply and demand.
Data released by the Energy Information Administration highlighted an increase in USA crude stocks by 2.3 million barrels to 525.9 million barrels in the week ending 26 August.
Oil traded near $45 after dropping the most in nearly a month following a government report that showed US stockpiles increased last week by more than projected.
U.S. crude inventories increased by 2.28 million barrels last week for a second straight gain, according to the Energy Information Administration. Crude production dropped for a second week to 8.49 million barrels a day, while gasoline inventories declined by 691,000 barrels to 232 million.
US crude stockpiles increased to 525.9 million barrels through August 26, the EIA reported Wednesday. The market determined them, Naimi said, but he gave no preferred range or any indication of what levels could be sustained in the long term. The situation before talks is still unclear. After submitting a comprehensive action plan to the Saudi Arabian General Investment Authority that includes several initiatives to contribute to the localisation of the Information and Communication Technology industry in Saudi Arabia, the new licence will allow the company to sell its products directly in the Saudi market.
This tracks a 52-cent gain in the contango spread between first and third month Dubai prices in August from July, traders said.
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At present Saudi Arabia is producing near record levels (10.43 million barrels a day in July) as it tries to preserve market share in the face of a worldwide glut, and is able to pump as much as 12.5 million barrels a day of oil. OPEC as a whole has lost hundreds of billions in export revenues.
