Oil Up Nearly 2% on Possible Production Freeze, Ahead of US Inventory Data

تم نشره في Thu 8 September / Sep 2016. 12:00 AM - آخر تعديل في Thu 8 September / Sep 2016. 05:29 PM
  • Oil Barrels Prepared - (Reuters)


NEW YORK — Oil prices rose 1.38 to 1.58 per cent Thursday ahead of weekly inventory data, after an industry group reported a sharp drop-off in US crude supplies, as the market focused on the possibility that the world's top producers would agree on an output freeze.


US crude for October delivery recently rose 72 cents, or 1.58 per cent, to USD46.22 on the New York Mercantile Exchange, as Brent, the global benchmark, rose 66 cents, or 1.38 per cent, to USD48.64 for November delivery.


Trade was choppy as some traders eyed US oil inventory data due late Wednesday and Thursday morning for clearer direction.


Oil hit a one-week high on Monday after Russia and Saudi Arabia agreed to cooperate on stabilizing the oil market. Prices have since fallen due to uncertainty over a deal, particularly after a meeting in Doha in April among the world's largest producers to discuss output ended in failure.


The Organization of the Petroleum Exporting Countries and non-OPEC producers such as Russia are expected to discuss an output freeze at informal talks in Algeria on Sept. 26-28.


Iran has said it would cooperate on a freeze only if fellow exporters recognized its right to boost market share to levels reached before the imposition of nuclear-related sanctions, which have now been lifted.


US crude inventories likely grew by about 200,000 barrels last week after rising for two straight weeks, a Reuters poll showed on Tuesday.


Some analysts, however, forecast a decline in crude oil inventories related to facility evacuations in the Gulf of Mexico due to storm activity last week.


The American Petroleum Institute releases its weekly oil data on Wednesday at 4:30 p.m. EDT, while the government releases its report on Wednesday at 11 a.m., both delayed by Monday's Labour Day holiday.