World oil prices rose slightly on Monday on supply concerns in Libya and Nigeria, and after OPEC member Venezuela indicated a deal to limit output was close.
Advertisement
Oil producers are to meet on the sidelines of an industry conference in Algeria next week for talks on potentially freezing oil production, ahead of OPEC’s all-important policy meeting in November.
Russian President Vladimir Putin on Wednesday ordered the start of production at a new oilfield that would add about 12,000 barrels per day in output, after daily oil production reportedly hit record highs of 11.75 million barrels.
Oil prices initially fell on pessimism that the Organization of the Petroleum Exporting Countries and other major crude producers will reach an output freeze deal at September 26-28 informal talks in Algeria.
International Brent crude futures were at $46.47 per barrel, up 59 cents, or 1.3%, from their last close. Crude oil price could be aided by a plunge in the U.S. Dollar if the Bank of Japan misses with its new plan to stimulate the economy.
Traders said that the main WTI price driver had been American Petroleum Institute data showing a 7.5-million barrel draw to 507.2-million barrels in United States crude inventories, the third weekly stock draw.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 22 cents at $43.08 a barrel.
The US crude stockpiles probably increased by 3.25 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report on Wednesday.
Brent futures closed down US7 cents at $US45.88 per barrel.
Russian Federation and members of the Organization of the Petroleum Exporting Countries hold an informal meeting in Algiers on September 28.
This outweighed comments made by OPEC Secretary-General Mohammed Barkindo, and reported by RIA news agency, that a potential deal between oil producers to freeze output levels could last one year, longer than previously expected. However, distillate inventories rose 1.4 million barrels.
OPEC ministers can transform the gathering into an extraordinary meeting since they’ll all be present, Algerian Energy Minister Noureddine Bouterfa said on public radio.
Advertisement
CMC Markets Singapore analyst Margaret Yang said traders are also “waiting for this week’s (US) crude inventory data to find clues of any changes of the supply-demand relationship”.
