Following OPEC president’s prediction, Oil rises to $45

Brent crude, used to price Global oils, was down 41 cents, or 0.9 percent, to $44.98 per barrel in London.

Oil prices retreated in Asia trade after rebounding overnight on news that OPEC is planning informal talks next month – a sign it could intervene to strengthen prices.

“It would appear that OPEC calls for restraint would be inevitable”, said Jim Ritterbusch of Chicago-based oil markets consultancy Ritterbusch & Associates, citing concerns over rising numbers of USA oil rigs and weakening energy demand.

“While a deal is highly unlikely to eventuate, the fact that it is even being mentioned shows how much difficulty the past month’s renewed selloff was causing many struggling OPEC members”.

Futures slipped 0.3 percent in NY after gaining 2.9 percent on Monday.

Benchmark U.S. crude was down 28 cents, or 0.7 percent, to $42.74 per barrel in NY.

Oilfield services company Baker Hughes posted fresh United States rig count data last Friday for the week of August 5, which showed an increase of 7 rigs to 381, the sixth straight week of a rig-count increase. The Nasdaq composite index lost 13 points, or 0.3 percent, to 5,207.

The EIA also left its 2016 USA oil demand growth forecast unchanged at 160,000 bpd.

In the near term, the market will be monitoring movements of US gasoline and crude stocks movements, which likely shrunk last week by 1.6 million barrels and 1.75 million barrels, respectively, according to a survey of analysts by S&P Global Platts. Target slid $2.43, or 3.2 percent, to $72.57.

Brent crude settled down 41 cents, or nearly 1 per cent, at $44.98 a barrel.

OPEC’s biggest producers have also been pumping near record high levels.

Venezuela’s energy ministry said Tuesday it’s working on arranging a meeting between OPEC and non-OPEC producing countries in the coming weeks, as the country remains focused on promoting coordinated action to stabilize crude prices, Kallanish Energy learns. Hong Kong’s Hang Seng index rose 0.4 percent to 22,548.55 while Australia’s S&P/ASX 200 dropped 0.5 percent to 5,525.20. At 0737 on Wednesday (AEST) Brent was down US36 cents a barrel, or 0.79 per cent, at $US45.03.

BONDS AND CURRENCIES: Bond prices fell.

CURRENCIES: The dollar weakened to 102.33 yen from 102.36 yen while the euro fell to $1.108 from $1.109.