Oil nudges down after Saudi-fuelled bounce


LONDON : Crude prices slipped on Friday on profit taking as following gains triggered by Saudi Arabia oil minister who hinted that producers could agree to limit production. US benchmark West Texas Intermediate for delivery in September was down six cents at $43.43 per barrel.

Thursday’s rebound follows a drop in prices earlier this week after official USA data showed a jump in crude inventories, taking by surprise investors who expected a drawdown in supply. Brent North Sea crude for October delivery fell 12 cents to $45.92 a barrel compared with the close on Thursday.

Saudi oil chief Khalid al-Falih was reported as saying on Thursday that an informal meeting of Organization of Petroleum Exporting Countries (OPEC) countries next month would be the occasion for producers to discuss any possible action.

Rumours have been circulating that global producers are mulling a deal to freeze output at current levels to help stabilise the market.

Prices soared more than four percent in reaction to the comments which were seen as a positive development in a market grappling with a supply glut. Prices are fluctuating by several percentage points on a daily basis and are changing direction almost every day.

A monthly report from OPEC also showed Saudi Arabian oil production is at nearly 10.5 million barrels per day in July, that is above peak levels seen the same time last year. But markets remain cautious.

Source : AFP



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