The all-time high in production was already reported in the kingdom’s data submissions to OPEC.
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Barkindo has said the group is not seeking a definite price range for oil but stability for the market.
“The credibility of bullish production freeze rhetoric from Venezuela is understandably being questioned in the run-up to next week’s Algiers meeting, while worries about additional supply (Nigeria, Libya) worsening the global glut add to the mix”, noted analysts at traders Accendo Markets.
Oil has fluctuated since August’s rally on speculation the Organisation of Petroleum Exporting Countries (Opec) and Russian Federation will agree next week in Algiers on ways to stabilise the market. However, Venezuelan president Nicolas Maduro says the two sides are nearing a deal to stabilise markets.
Earlier this month, Russian President Vladimir Putin said it was time for major oil producers – such as Russia and OPEC – to agree to an output cap. OPEC must reach an equitable agreement that all its members support, and any accord must also satisfy non-OPEC producers, he said.
Futures retreated from the day’s high as a tanker returned to Libya’s Ras Lanuf export terminal to load oil after clashes halted what will be the first overseas crude shipment from the terminal since 2014.
NY crude had shed 6.6 percent in value and Brent fell 4.5 percent.
Speculation about what could come out of the side meeting between big producers at a coming conference in Algeria next week “has picked up on reports that OPEC could call an emergency meeting to ratify any agreement reached at the informal meeting”, said Colin Cieszynski, chief market strategist at CMC Markets.
West Texas Intermediate for November delivery rose as much as US$1.09 to US$45.14 a barrel on the New York Mercantile Exchange and was at US$44.85 at 9:36am in Hong Kong.
“It seems there are more barrels than ever coming to the market because of OPEC and there should be no fundamental reason for prices to go up”, said Scott Shelton, broker with ICAP in Durham, North Carolina. Opec’s all-important policy meeting is due in November. Official data released late on Monday confirmed a rise in Saudi Arabian oil exports in July to 7.622 million bpd, up from 7.456 million bpd in June.
US crude stockpiles likely rose 2.3 million barrels last week, analysts forecast in a Reuters poll. He didn’t specify whether they would discuss a pact to freeze production.
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The surplus in global oil markets will last for longer than previously thought, persisting into late 2017 as demand growth slumps and supply proves resilient, the International Energy Agency said on September 13 in its monthly report.
