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Hot NewsNigerian economyWorld

Oil price climbs as Venezuela sees output deal

9News Nigeria
Last updated: September 19, 2016 2:30 pm
By 9News Nigeria
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Crude oil continue to fall 9News Nigeria
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* Venezuela says could be OPEC/non-OPEC deal this month

* Clashes in Libya halt loading from port of Ras Lanuf

* Iran crude exports near pre-sanction levels

* U.S. oil drillers add rigs for 11th week in 12 (Updates prices, adds details)

By Dmitry Zhdannikov

LONDON, Sept 19 (Reuters) – Oil prices rose on Monday from multi-week lows after Venezuela said OPEC and non-OPEC producers were close to a deal to stabilise the market and as clashes in Libya disrupted attempts to boost crude exports.

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Brent crude futures were $46.15 per barrel at 1337 GMT, up 38 cents from their previous settlement but off an earlier peak of 46.62. U.S. crude was up 47 cents, or 1.1 percent, at $43.50 a barrel.

Venezuelan President Nicolas Maduro has said a deal could be announced this month to stabilise oil markets, which have come under pressure due to persistent oversupply.

“We think there is a great window of opportunity for a freeze here,” Natixis analyst Deshpande Abhishek said. “It will not just help balance the markets, but it is also a win-win for OPEC and Russia, as Iran is unlikely to add extra production anyway for the next 6-12 months.”

Crude exports from OPEC’s third-biggest producer Iran jumped 15 percent in August from a month ago to more than 2 million barrels per day, according to a source with knowledge of its tanker loading schedule, closing in on shipment levels seen five years ago before Western sanctions.

Last week, Brent hit a two-week low and U.S. crude fell to a five-week low on concerns about oversupply with more deliveries from Libya and Nigeria.

On Monday, ICE exchange data showed hedge funds and other large money managers have raised their weekly bets on rising crude oil prices, with net long positions in Brent stabilising around levels seen in mid-August when the market got the first indications of a possible OPEC output deal.

Prices were also supported by a weaker dollar and as the expected boost to Libyan exports was delayed.

Clashes in Libya have halted the loading of the first oil cargo from the port of Ras Lanuf in close to two years and raised fears of a new conflict over Libya’s oil resources.

However, concerns about rising supplies remain a bugbear. A preliminary Angolan November loading plan showed supplies were set to bounce back from a 10-year low.

In the United States, drillers have added oil rigs for 11 out of the past 12 weeks. (Additional reporting by Mark Tay in Singapore; editing by Himani Sarkar and David Clarke)

 

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By9News Nigeria
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9News Nigeria is Nigeria's favourite news source. For Authentic, Unbiased News on Politics, Business, Sports, Technology, Entertainment and Lifestyles, Health, Nollywood, Crime and Investigations, Family and Relationships, Inspirations .. and much more. For Latest News from Africa and around the world, 9News Nigeria is your best source. WhatsApp +2348115805632 Email: [email protected] Facebook: www.facebook.com/9NewsNG | Twitter/Instagram: @9newsng
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