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BRENT CRUDE $52.51

Oil prices stay strong at over $50/barrel

SAN FRANCISCO, October 7, 2016

Oil prices settled above $50 in early Asia trade Friday, owing to declining US inventories and reports that key members of the Organization of the Petroleum Exporting Countries (Opec) and Russia will meet next week to discuss Russia’s participation in the joint cut production, said a report.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $50.47 a barrel, up $0.03 in the Globex electronic session. December Brent crude on London’s ICE Futures exchange was flat at $52.51 a barrel, said a report in MarketWatch.

Last week, the 14-member group agreed to cut between 200,000 barrels a day and 700,000 barrels a day of their output to alleviate the global oil glut that has weakened prices for more than two years. The group, which controls more than one third of the world’s oil production said it also wants the participation of non-Opec producers in a concerted efforts to curb production. it said.

Opec secretary-general Mohammad Senusi Barkindo is planning to meet Russia’s energy minister Alexander Novak for “consultations” on the sidelines of an energy summit in Istanbul next week, a person familiar with the meeting said.

The news boosted sentiment, as market watchers take this as a sign that oil producers are finally moving toward the same direction.

“If there are clear signs Russia is full on broad with the program, the bulls will be running hard as upside targets are eyed,” said Stuart Ive, a client manager at OM Financial.

The possible collaboration among Opec and Russia, combined with continual decline in U.S. crude inventories buoyed US-trade oil prices to close above for the first time in the overnight New York session since June.




Tags: Oil | US | Brent | Crude | price |

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