Oil Over USD50 at 6-Week High on Talk of Supply Freeze

تم نشره في Thu 18 August / Aug 2016. 12:00 AM
  • BP Oil Facility - (AFP)

LONDON — Brent crude oil hit a 6-week high of USD50.22 a barrel on Thursday, up 37 cents on the day and its highest since July 4th, as the world's biggest producers prepared to discuss a possible freeze in production levels. US light crude oil was up 65 cents at USD47.44.

Benchmark North Sea Brent has risen 20 per cent from a low in early August on news the Organization of the Petroleum Exporting Countries and other key exporters will probably revive talks on freezing output levels when they meet in Algeria next month.

Many OPEC members have been hurt badly by a collapse in oil prices over the last two years. While some Gulf oil exporters have very low output costs, other producers such as Iran and Venezuela need oil prices above USD100 to balance their budgets.

But freezing production at current levels might not help bolster prices, analysts say.

Saudi Arabia has signalled that it could boost its crude oil supplies in August to a new record, even as it prepares to discuss output levels with other producers. OPEC members will meet on the sidelines of the International Energy Forum in Algeria on September 26-28.

Analysts at Citi warned of the risks of a price rally based largely on potential future talks on freezing output levels given similar meetings earlier failed to produce any such agreement.