At about 0345 GMT, US benchmark West Texas Intermediate was up 79 cents at Dollars 43.82 and Brent rose 78 cents to USD 46.55.
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The rise in oil prices is a reaction to Venezuelan comments about producers reaching a possible output agreement, said Ric Spooner, CMC Markets’ chief market analyst.
At the Multi Commodity Exchange, crude oil for delivery in September was trading higher by Rs 49, or 1.70 per cent, to Rs 2,934 per barrel in a business turnover of 2,932 lots.
The president stressed that the country promoted dialogue between oil producing countries to reach deals which would allow to sustain the level of investment that the industry needed, as well as to meet the world energy demand.
OPEC Secretary General Mohammed Barkindo is scheduled to arrive in Algeria on Saturday for discussions before a scheduled meeting of OPEC members in Algiers later this month, an Algerian government source said on Friday.
“We had a long bilateral meeting with Rouhani”.
Venezuela President Nicholas Maduro on Sunday said participants in the talks – the OPEC cartel and Russian Federation – are now working on a deal and that he had discussed the issue with his Iranian and Ecuadoran counterparts.
Eastern Libyan forces said they had reestablished control over two oil ports where an ousted faction launched a counter-attack on Sunday, briefly seizing one of the terminals.
To which Seth Kleinman, global head of energy strategy for Citigroup, remarked, “The low oil price is doing the work of squeezing out that excess capacity in every link in the supply chain; the problem is that it’s setting us up for a bullish oil market because we’re just not sanctioning any oil projects from down here”.
Concerns over rising supplies remain a bugbear on sentiment.
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In the United States, drillers have added oil rigs for 11 out of the past 12 weeks. This news story is related to Latest/150975-Oil-up-as-Venezuela-sees-output-deal/ – breaking news, latest news, pakistan ne.
