Oil futures advanced Monday but had come off higher levels after an announcement from Russian and Saudi Arabian officials didn’t deliver as much as investors had anticipated.
October West Texas Intermediate crude CLV6, +2.16% rose by 58 cents, or 1.3%, to $45.02 a barrel, while November Brent crude LCOX6, +0.52% tacked on 48 cents, or 1%, to $47.31 a barrel.
But oil prices had shot much higher following a Reuters report that Saudi Arabia’s energy minister, Khalid A. Al-Falih, was set to make a “significant announcement” at the G-20 meeting in China. That raised expectations that the Saudis and Russians would say they had agreed on an output cap aimed at lifting energy prices.
Brent futures had jumped more than 5% to trade above $49 a barrel, and WTI futures had climbed more than 4% to trade above $46.
But prices came off those session highs after the release of the statement itself. The world’s two largest oil producers said they will set up a working group to monitor the oil market and come up with recommendations to promote stability, according to reports.
Al-Falih and his Russian counterpart, Alexander Novak, will meet in Algeria in October and in Vienna in November to discuss how to cooperate under the new agreement, the reports said.
Al-Falih described an output freeze as a “favorable option, but not necessary today.”
Investors had hoped that Russia and Saudi Arabia would issue a “more concrete/policy statement to curb the supply,” wrote Naeem Aslam, chief market analyst at Think Markets, ahead of the announcement.
On Friday, WTI crude settled 3% higher after Russian President Vladimir Putin urged oil-producing nations to agree on a production cap at an informal meeting of the Organization of the Petroleum Exporting Countries in Algeria later this month. But the U.S. oil benchmark last week still suffered a weekly loss of roughly 6.7%.
Click here for Free Signals OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
October West Texas Intermediate crude CLV6, +2.16% rose by 58 cents, or 1.3%, to $45.02 a barrel, while November Brent crude LCOX6, +0.52% tacked on 48 cents, or 1%, to $47.31 a barrel.
But oil prices had shot much higher following a Reuters report that Saudi Arabia’s energy minister, Khalid A. Al-Falih, was set to make a “significant announcement” at the G-20 meeting in China. That raised expectations that the Saudis and Russians would say they had agreed on an output cap aimed at lifting energy prices.
Brent futures had jumped more than 5% to trade above $49 a barrel, and WTI futures had climbed more than 4% to trade above $46.
But prices came off those session highs after the release of the statement itself. The world’s two largest oil producers said they will set up a working group to monitor the oil market and come up with recommendations to promote stability, according to reports.
Al-Falih and his Russian counterpart, Alexander Novak, will meet in Algeria in October and in Vienna in November to discuss how to cooperate under the new agreement, the reports said.
Al-Falih described an output freeze as a “favorable option, but not necessary today.”
Investors had hoped that Russia and Saudi Arabia would issue a “more concrete/policy statement to curb the supply,” wrote Naeem Aslam, chief market analyst at Think Markets, ahead of the announcement.
On Friday, WTI crude settled 3% higher after Russian President Vladimir Putin urged oil-producing nations to agree on a production cap at an informal meeting of the Organization of the Petroleum Exporting Countries in Algeria later this month. But the U.S. oil benchmark last week still suffered a weekly loss of roughly 6.7%.
Click here for Free Signals OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
No comments:
Post a Comment