Brent price is close to $ 47

06.09.2016

Brent price came close to around $ 47 a barrel during Tuesday trading session, continuing to move away further from its week peak of the previous session, amid fading hopes that producing countries will soon take action to restore the balance of supply and demand on the market.

On Monday, the quotes of Brent jumped nearly 5% due to the agreements between Russia and Saudi Arabia on joint action to stabilize the oil market, but lost the position after the words of the Saudi Energy Minister Khalid al-Falih, who questioned the need for an immediate freeze production.

"Cooperation between the two countries is quite clear", - said Kaname Gokon of Okato Shoji in Tokyo. - But if they will reduce production, other manufacturers will benefit from it. It is still an open question whether they will be able to reduce production for an extended period. "

Brent crude futures for November delivery fell 0.65% to $ 47.32 per barrel.

Futures for WTI US crude for October delivery, the bids of which were inactive yesterday in observance of Labor Day in the United States,  reached this time were the mark of $ 44.96 per barrel, or 1.17% above Friday's close.

The members of the Organization of Petroleum Exporting Countries (OPEC) and countries outside the cartel, including Russia, will hold informal talks in Algeria on 26-28 September.

Iran, which began to increase production after the removal of Western sanctions in January, refused to join the OPEC attempt, undertaken earlier this year, to stabilize the production. The April negotiations ended in failure.

Sources in the cartel and the oil industry told Reuters last month that now, apparently, Tehran seeks to achieve agreement with other oil producers.

On Tuesday, the market is waiting for a meeting between the new head of the OPEC Mohammed Barkindo and Iranian Oil Minister Namdar Zanganeh Bijan.

 

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