Oil climbs as Saudi Arabia warns of OPEC output cuts

Date:

Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. REUTERS/Nick Oxford

Register now for FREE unlimited access to Reuters.com

  • Saudi says OPEC+ could cut production to tackle oil crisis – report
  • Iran says US delays nuclear deal, US sees progress
  • Coming soon: API data on US oil inventories at 4:30 p.m. ET

Aug 23 (Reuters) – Oil rose Tuesday as renewed worries about tight supply dominated market sentiment after Saudi Arabia warned the major oil producer could cut production to correct a recent drop in oil prices.

Brent oil gained 42 cents, or 0.4%, to $96.90 a barrel at 0630 GMT after a choppy session on Monday as they fell more than $4 before cutting losses to trade near flat. It rose $1 a barrel in early trading hours in Asia.

US West Texas Intermediate crude oil futures were up 40 cents, or 0.4%, to $90.76 a barrel.

Register now for FREE unlimited access to Reuters.com

Benchmarks have fallen about 12% and 8% respectively this month on fears of a global recession and fuel demand.

The Organization of the Petroleum Exporting Countries stands ready to cut production to correct the recent drop in oil prices caused by poor liquidity in the futures market and macroeconomic fears, which have fueled the extremely tight physical supply of crude oil. have ignored, OPEC leader Saudi Arabia said Monday. read more

Saudi Arabia’s state news agency SPA cited Saudi Arabia’s energy minister Prince Abdulaziz bin Salman, who told Bloomberg that OPEC+ has the resources and flexibility to meet challenges.

As Saudi Arabia stands out to defend prices, the market is likely to seize the opportunity to build long positions, Haitong Futures analysts said, adding that the outcome of Iran’s nuclear deal remains a major uncertainty.

Iran accused the United States on Monday of delaying attempts to revive Tehran’s 2015 nuclear deal — an accusation denied by Washington, which said a deal was closer than two weeks ago due to apparent Iranian flexibility. read more

Meanwhile, Europe faces another energy supply disruption due to damage to a pipeline system bringing oil from Kazakhstan through Russia, raising concerns about a decline in gas supplies. read more

The current tight supply-side is underlined by US crude inventory in the Strategic Petroleum Reserve (SPR) at its lowest level in more than 35 years, Yeap Jun Rong, IG Group’s market strategist, said in a note.

As for supply in the US, market participants are waiting for industry data expected at 4:30 p.m. ET on Tuesday. US crude oil and gasoline inventories likely fell last week, while distillate inventories rose, a preliminary Reuters poll showed on Monday.

Register now for FREE unlimited access to Reuters.com

Reporting by Stephanie Kelly and Muyu Xu; Editing by Himani Sarkar, Jacqueline Wong & Simon Cameron-Moore

Our Standards: The Thomson Reuters Trust Principles.

Stephanie Kelly

Thomson Reuters

A New York-based correspondent covering the US crude oil market and member of the energy team since 2018 for the oil and fuel markets and federal renewable fuel policies.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

U.S. ski-mountaineer Hilaree Nelson found dead on Nepal’s Manaslu peak

Nepalese rescuers discovered the body of a noted American...

The Largest Social Security Increase in Decades Is Only 1 Big Announcement Away

After months of anticipation, Social Security retirees will soon...

Russian men flee Putin’s partial mobilization order for war in Ukraine

ISTANBUL — To escape the fighting in Ukraine, the...