Oil prices rebound over the week at the International market as hope was rekindled that the planned meeting of the major crude producers will help control the long running supply glut that has substantially hurt prices.
OPEC members and Russia are billed to begin a three day meeting in Algeria from Monday to discuss ways of ending the over supply that has driven prices to its lowest point in 13 years.
Traders, who had been uncertain over the possibility of the meeting reaching any deal on maintaining current output levels or cutting production, became more optimistic after reports of a meeting between Saudi Arabia, Iran and Qatar at OPEC headquarters in Vienna.
Speaking on the planned meeting, Fawad Razaqzada, a Market analyst at Forex.com said: “A deal to freeze production should give oil prices a significant boost while if there is no deal then expect to see a big drop, at least in the short-term,” said Fawad Razaqzada, market analyst at Forex.com.
Around 1615 GMT, US benchmark West Texas Intermediate for delivery in November was down $1.43 at $44.93 a barrel compared with Thursday’s close.
Brent North Sea crude for November delivery shed $1.25 to $46.40 a barrel.
Both contracts rose over the week however after booking strong gains in the previous two sessions. WTI surged 6.6 per cent and Brent gained 3.9 per cent — on data showing US commercial inventories fell more than six million barrels last week, indicating stronger demand in the world’s top oil consuming country.
By Timothy Enietan-Matthews….
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