Oil prices rose in Asian trade on Monday after Venezuela said that OPEC and non-OPEC countries were close to reaching an output stabilizing deal and as clashes in Libya raised concerns that efforts to restart crude exports could be disrupted.
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An attempt at a oil output deal in April fell apart when Iran, which had just emerged from years of Western nuclear-linked sanctions, refused to take part in Doha talks.
U.S. West Texas Intermediate (WTI) crude futures were down 25 cents at $43.05 a barrel.
US gasoline futures settled up 2.5 percent at $1.3990 per gallon after data showed stocks of the motor fuel fell 3.2 million barrels nationwide, compared with analysts’ expectations for a 567,000-barrel drop.
Oil prices were up as much as 2 per cent on Wednesday, reacting to the possibility of another surprise weekly drop in USA inventories amid an industry strike in Norway that threatened to cut North Sea crude output. “We should not drive expectations in a certain direction prior to the meeting”.
Around 1130 GMT, Brent North Sea crude for delivery in November was up 58 cents at $46.35 a barrel compared with Friday’s closing level.
“The agency’s Sec Gen appears to be sending off signals that the talks will be informal and unlikely to result in a decision to restrain output”, said Jim Ritterbusch of Chicago-based oil markets consultancy Ritterbusch & Associates.
“If the EIA confirms (the data), that means USA oil supply has fallen close to 21 million barrels over the last three weeks”.
Overall, however, oil markets remain oversupplied as exporters around the world pump near record amounts, while demand stutters.
Looking forward, the EIA has announced that starting October 13, it won’t include the oil lease stocks in the U.S.in its commercial inventory weekly report, which means some 31 million barrels will be deducted from every weekly total.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, rose by 0.526 million barrels last week, the EIA said.
Official data released late on September 19 confirmed a rise in Saudi Arabian oil exports in July to 7.622 MMbbl/d, up from 7.456 MMbbl/d in June.
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OPEC must find a “sustainable” way to stabilize oil markets in any agreement its members may reach when they meet next week in Algeria, the United Arab Emirates’ energy minister said.
