Close  
  • share this

Oil prices ease as focus shifts to producers meeting

/ 12:33 PM September 23, 2016
AP File Photo

AP File Photo

SINGAPORE, Singapore—Oil prices eased in Asian trade Friday on profit-taking following two days of solid gains as traders turned their attention to next week’s planned meeting of key producers.

Russia and members of the OPEC oil cartel led by Saudi Arabia will gather in Algeria for three days from Monday and are expected to discuss a stubborn supply glut that has depressed prices since 2014.

ADVERTISEMENT

Traders are uncertain that a deal can be reached on freezing or cutting output, but reports that Saudi Arabia, Iran and Qatar met at the OPEC headquarters in Vienna has fuelled optimism.

An earlier Saudi-led attempt to freeze output fell apart in April after Iran refused to participate, saying it needed to raise production depleted by years of western economic sanctions lifted only in January.

FEATURED STORIES

At around 0320 GMT, the US benchmark West Texas Intermediate (WTI) was down 50 cents at $45.82 and Brent dropped 37 cents to $47.28.

Both contracts booked solid gains over the previous two days—WTI surged 6.6 percent and Brent gained 3.9 percent—on data showing US commercial crude inventories fell more than six million barrels last week, indicating strong strong demand in the world’s top oil consumer.

“Anticipation of next week’s Algiers OPEC meeting has once again underpinned (oil prices) although the probability of an agreement is very low,” said Stephen Innes, senior trader at OANDA.

“But with the recent inventory data still fresh in traders’ memories, position squaring dominates the current landscape.”

Oil prices plunged from peaks of more than $100 a barrel in mid-2014 to near 13-year lows below $30 in February as supply outpaced demand.

RELATED STORIES

Oil rises on US stockpile drop, weaker dollar

ADVERTISEMENT

Oil prices drop as Libya moves to boost exports

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Commodities, oil, world
For feedback, complaints, or inquiries, contact us.



© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.