Oil rises as Venezuela’s Maduro says production freeze deal is ‘close’

Non-OPEC producer Russian Federation is also attending the forum.

Crude stocks in the United States, the world’s largest oil consumer, have fallen since 14.5 million barrels were drawn in the week to September 2, the biggest weekly drop since 1999 after a storm disrupted imports to the U.S. Gulf Coast.

Oil prices edged lower on September 20 ahead of an expected build in US crude oil stocks and on Venezuelan comments that the oil market remains oversupplied by 10%.

Iran is exporting 2.3 million to 2.4 million barrels a day of oil, and National Iranian Tanker Co.is seeking to regain its share of the oil-shipping market, the state-run company’s Commercial Director Nasrollah Sardashti said at the event in Fujairah.

“The Colonial Pipeline mess is evident in the gasoline data”, said John Kilduff, partner at NY energy hedge fund Again Capital in NY.

Brent crude futures were up 40 cents at $46.17 a barrel by 1:24 p.m. EDT (1724 GMT), reaching as high as $46.93 earlier.

Overall though oil remains oversupplied with pumping around the world at near record levels.

U.S. West Texas Intermediate (WTI) crude futures rose by 37 cents to $43.40, after a session high at $44.15.

“Maduro said on Sunday that OPEC and non-OPEC countries were close to reaching an agreement to stabilize the price, and these comments have led traders to speculate that we could see a production freeze announced next week”, David Cheetham of brokerage XTB said.

(Adds quotes, background) FUJAIRAH, UAE, Sept 21 (Reuters) – An oil meeting next week in Algiers due to be attended by OPEC countries is aimed at holding consultations rather than making decisions, the energy minister of the United Arab Emirates said on Wednesday.

For Brent, he said prices may test support at $45.63/bbl and, failing to hold that level, could fall to just more than $45/bbl.

Prices jumped after the U.S. Energy Information Administration (EIA) stunned the market when it said crude inventories fell 6.2 million barrels last week.

During a visit to Algiers at the weekend, OPEC Secretary General Mohammed Barkindo said an extraordinary meeting could happen if there is consensus. However, Venezuelan president Nicolas Maduro says the two sides are nearing a deal to stabilise markets.

But it said details of the meeting and a news conference by Fed chair Janet Yellen will be “closely scrutinised for hints of the next rate move”.