USA oil futures extended losses into a third session in early Asian trade on Wednesday as US crude stocks last week surged to more than half a billion barrels, stoking concern over global oversupply.
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“Russia yesterday reported a rise in its oil production in January to just under 10.9 million bpd (barrels per day), which is a new high since the break-up of the Soviet Union”, Commerzbank said in a report.
Del Pino’s meeting with Mohammed Saleh Al Sada was part of a tour of oil-producing nations – including both members and non-members of the Organization of the Petroleum Exporting Countries – that is aimed at drumming up support for actions to “stabilize the market”, his portfolio said in a statement.
“We are open to other forms of cooperation if there is a wish shared by everyone to hold a meeting…between OPEC members and countries outside OPEC”, he said.
Comments from Russian Federation – that it is prepared to meet with OPEC if there’s consensus among its members – provided the impetus for trading.
The market pushed lower as investors switched focus back to Wednesday’s news of another increase in American commercial crude inventories. US crude futures rose 58 cents to $30.45, off a session low of $29.40.
Analysts said that prices had recovered support from a sliding dollar, as well as from ongoing yet unconfirmed talk of a potential meeting by major oil producers to cut output in support of prices, which have fallen around 70 percent since mid-2014.
At about 1725 GMT on Tuesday, US benchmark West Texas Intermediate for delivery in March stood at United States dollars 30.32 a barrel, showing a decrease of USD 1.30 compared with Monday’s close.
Demand for oil, particularly in Asia, proved robust a year ago, but not enough to absorb near-record supply and ballooning inventories of unwanted crude. “Oil prices are coming off again”. “Without Saudi Arabia it would not make sense anyway”.
Del Pino will try to persuade oil-rich countries to cooperate in cutting oil production to boost the price of oil to at least US$60 a barrel.
Deputy Prime Minister Arkady Dvorkovich said last week that Russia’s oil companies – and not the government – should decide whether to cut production in the face of low oil prices.
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It added that the ongoing glut of crude oil and the notable slowdown in China’s economy and their predicted effects on oil demand continue to be the key factors weighing on oil prices since the sell-off in oil began 18 months ago.
