Oil At 5-Week High As OPEC Sources, Russia, Talk Of Cooperation
NEW YORK, Aug 16 (Reuters) - Oil settled up nearly 2 percent on Tuesday, hitting five-week highs for a second straight day as sources at OPEC spoke of Saudi Arabia's desire for higher crude prices while Russia met the producer group to discuss the market.
The dollar's tumble to an eight-week low also supported crude prices, as did the loss of more than 700,000 barrels per day (bpd) in Nigerian output to militant attacks and pipeline problems.
The Organization of the Petroleum Exporting Countries will probably revive talks on freezing oil output levels when it meets non-OPEC nations next month, OPEC sources told Reuters, citing Saudi Arabia's wish for higher prices.
Russian and OPEC energy officials discussed oil markets at a meeting in Vienna, Russia's Energy Ministry said. Another "energy dialogue" between Russia and OPEC has been scheduled there for October.
"While it is tempting to dismiss the OPEC chatter as a non-factor intended to talk up prices, we are also resigning to a momentum shift in which our technical indicators are flashing green lights in favor of further crude price rallies of at least a couple of dollars a barrel," said Jim Ritterbusch of Chicago-based oil markets consultancy Ritterbusch & Associates.
Brent crude settled up 88 cents, or 1.8 percent, at $49.23 a barrel. It rose more after settlement, reaching $49.36, its highest since July 7.
U.S. West Texas Intermediate crude rose 84 cents, or 1.8 percent, to settle at $46.58. It reached $46.73 after settlement, its highest since July 12.
Prices pared some gains in after market trade after data from the American Petroleum Institute showing an unexpected draw in U.S. crude stockpiles was overshadowed by surprise hefty builds in gasoline and distillates, indicating the glut in refined oil products was growing.
Official inventory data from the U.S. Energy Information Administration is due on Wednesday at 10:30 a.m. (1430 GMT).
Technical analysts said oil could set 2016 highs in four to six weeks if Brent crosses $50 and U.S. crude $48.
But volatility also looks certain, with speculators ramping up on both bullish and bearish wagers.
"If we've learned anything about the oil market, it is that sentiment is extremely fragile," said Michael Tran, director of energy strategy at RBC Capital Markets in New York.
Brent and WTI have both gained about 11 percent since Thursday after Saudi Energy Minister Khalid al-Falih said the kingdom would work with other producers to stabilise the market. .
Many analysts were skeptical producers would cut a deal. An OPEC production freeze plan in April was scuttled by a Saudi Arabia that was keen then to protect market share.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- USA Oil and Gas Job Figures Jump
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension