Oil Extends Gains As Saudi Comments Fan Output Cut Hopes
Muhammad Rameez Published August 12, 2016 | 11:44 AM
SINGAPORE,(UrduPoint / Pakistan Point News - 12th Augst,2016) : Crude prices rose in Asia Friday, extending overnight gains after Saudi Arabia's oil minister hinted producers could agree to limit production. Rumours have been circulating that global producers are mulling a deal to freeze output, to help stabilise the market.
Prices entered a "bear" market last week, falling more than 20 percent and closing below $40 a barrel for the first time since April. Khalid al-Falih was reported as saying Thursday that an informal meeting of Organization of the Petroleum Exporting Countries (OPEC) countries next month would be the occasion for producers to discuss "any possible action". Prices soared more than four percent Thursday in reaction to the minister's comments, which were seen as a positive development in a market grappling with a supply glut. "Oil traders were spurred into action" by the comments, said Bernard Aw, market strategist at IG Markets Singapore. At around 0420 GMT, US benchmark West Texas Intermediate for delivery in September was up 46 cents, or 1.06 percent, at $43.95 and Brent crude for October added 32 cents, or 0.70 percent, at $46.36 a barrel. The rebound follows a drop in prices earlier this week after official US data showed a jump in crude inventories, taking by surprise investors who expected a drawdown in supply.
Markets thus remain cautious about the possibility of an output freeze, after meetings earlier this year failed to agree on any production ceiling as key crude producers preferred to fight for market share. "Khalid al-Falih hinted at possible cooperation between OPEC and non-OPEC countries to curb production," said Alex Furber, an analyst with CMC Markets. "The likelihood of such an event, however, is questionable, given that the market was teased in a similar way back in April." OPEC's informal meeting will take place on the sidelines of the International Energy Forum in Algeria from September 26 to 28, ahead of a planned meeting due at the end of November. Stephen Innes, senior trader at OANDA Asia Pacific, said al-Falih's comments had also affected equity markets. "Despite signals pointing to a potentially enormous bulge in crude stocks for 2017, there appears to be no taming of the oil market bull when OPEC speaks," he said in an email commentary.
Balochistan Health sent two trucks of medical kits for women, girls of rain hit ..
Land Record Center building inaugurated in Fateh Jang
New era of development will begin in DIKhan: City Mayor
Deserving people will receive food hamper in Hazro from March 5
Pakistan's embassy in UAE launch book on Pakistan's nuclear deterrence
WASA issues SOPs to facilitate its consumers during Ramadan
"Clean and Green Punjab" initiative launched
Huawei unveils comprehensive suite of intelligent solutions at MWC 2024
'Shocked' EU demands probe into Gaza aid convoy deaths
Farmers advised to sow summer vegetables till end of March
NBF, PAL forge strategic alliance for book distribution
Eating dry fruits good for health: Experts
More Stories From Business
Eurozone inflation dips further in February28 minutes ago
Exports witnesses 30% growth in February1 hour ago
PSX stay bullish, gains 747.16 more points2 hours ago
CPI inflation decelerates to 23.1 percent in February3 hours ago
US spy-tech firm Palantir faces rocky path to European ambitions3 hours ago
UK delegation members visit LCCI, hold B2B meetings with Pak counterparts3 hours ago
Weekly inflation up by 1.27 pc3 hours ago
PSX stay bullish, gains 747 more points3 hours ago
President FPCCI for tapping D-8 markets to enhance exports4 hours ago
Hong Kong's total retail sales value up 0.9 pct in January4 hours ago
European stock markets mostly climb as eurozone inflation eases4 hours ago
1st Pakistan Financial Literacy Week from March 44 hours ago