New York (Benchmark News) – Oil Price Strengthened on Monday (26/9/2016), because the main producers started their meeting to discuss ways of supporting the falling market.
Members of OPEC (Organization of petroleum exporting countries) and Russia are scheduled to meet on the sidelines of the International Energy Forum in Algeria on 26-28 September.
Although countries including Saudi Arabia have downplayed the meeting as “an opportunity to consult rather than taking a decision on production levels”, it is still widespread expectation that major oil producers could reach an agreement during the meeting that production cuts to stabilize the market.
U.S. benchmark crude oil, West Texas Intermediate (WTI) for November delivery increased 1.45 u.s. dollars being settled in 45.93 u.s. dollars a barrel on the New York Mercantile Exchange.
Meanwhile, the European benchmark, Brent crude oil for November delivery rose 1.46 u.s. dollars to close at 47.35 u.s. dollars a barrel on London’s ICE Futures Exchange.
Oil Price Strengthened on Monday returned the majority of the decline from Friday (11/9), when doubts about the talks of Algeria pushed world oil prices down.
“Most of this is just going up and down due to speculation about what will happen in the next three days at a meeting in Algeria,” said James Williams at WTRF Ekonomics. “And frankly we don’t know.” Andy Lipow of Lipow, a Houston consulting firm Oil Associates, told AFP, was quoted as saying that a boost in part because OPEC’S leading Member States News Saudi Arabia is somewhat more open to a deal than previously believed.
Algerian Energy Minister Noureddine Boutarfa also spoke of hope full of prospects for a deal. OPEC “agreed about the need to stabilize rates, and than we found a format that pleases everyone”, Boutarfa said on Sunday.
However, analysts warn that there are still major obstacles.
“While some OPEC members have made positive noises ahead of the talks, there are still questions over how the effectiveness of an informal agreement,” said analyst Bill Hodder in consultant based in the United Kingdom, Love Energy.
“Iran is still not responding to the offer of Saudi Arabia to freeze production, may indicate that it may be difficult for them to approve the deal on Wednesday.”…(Red)