Brent on Thursday rose above $50 a barrel for the first time since June 24 in a sharp bull-run which has seen prices soar over 20 percent since early August.
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Crude oil prices were flat on Friday in Asia with U.S. Western Texas Intermediate at $48.36 a barrel while European Brent crude was at $50.89 a barrel around 11.30am HK/SIN time.
The commodity has been nearly unstoppable over the past two weeks, climbing from below $42 a barrel at the beginning of August to hit its highest level since mid-June.
After a huge sell-off in the month of July, Crude oil prices have rebounded sharply since the start of this month. Taiwan (中油) to raise domestic fuel prices by NT$1.0 (US$0.032)-NT$1.1 per liter next week, the sources said. “Remember that it’s highly unlikely that major oil producers, who compete with each other, will agree to cooperate”. Brent ended the session 2.1 percent higher at $50.89 a barrel while US crude settled 3.1 percent higher.
USA benchmark West Texas Intermediate for September delivery gained $1.43 to $48.22 a barrel on the New York Mercantile Exchange.
Oil is set for its biggest weekly gain since March after entering a bull market amid speculation that major producers may act to freeze output and as US crude and fuel stockpiles decline.
OPEC members will meet on the sidelines of the International Energy Forum, which groups producers and consumers, in Algeria on September 26-28.
Analysts also cited weakness in the dollar as a boost for petroleum prices following Federal Reserve meeting minutes released Wednesday that suggested central bankers would remain cautious on raising interest rates.
The market was further encouraged after Russian Federation, a non-OPEC player which produced 10.85 million barrels a day in July, threw its weight behind a possible collaboration among the producers.
“Oil prices continue the upward trend on upcoming freeze-deal talks”, said Michael Poulsen, an analyst at Global Risk Management Ltd. Earlier this year, the proposal of an output cap was crushed after Saudi Arabia and Iran rebuffed the idea, underscoring the difficulty for political rivals to forge consensus.
“One unique trait of the US shale producers is that they are very quick and responsive to price changes and could easily interrupt any supply arrangement”, said Ric Spooner, chief analyst at CMC Markets.
Oil trading groups Astra Transcor Energy and Vitol have secured one vessel each to export crude from the U.S.to the United Kingdom or the Mediterranean, Reuters reported, citing two sources in the know and Thomson Reuters shipping data.
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Nymex reformulated gasoline blendstock-the benchmark gasoline contract-fell 0.9% to $1.48 a gallon.
