Opec agreement to boost oil output inevitable, says Saudi Arabia
Oil steadied just below $67 a barrel as Saudi Arabia’s energy minister said an Opec agreement to raise production is ‘inevitable’.
Futures in New York rose 0.5 per cent after a 1.4 per cent increase in the past 3 sessions. After talks in Moscow on Wednesday night, Saudi energy minister Khalid Al-Falih said on Thursday he expects Opec to reach a deal to gradually boost output. His Russian counterpart Alexander Novak said they agree on the need for an increase, but the volume and timing of the extra production are still under discussion.
Opec and its allies will meet next week in Vienna at what’s likely to be a contentious summit. Saudi Arabia and Russia are facing opposition from Iraq, Iran and Venezuela on their proposal to relax output caps, while the US continues to criticise the cartel for boosting prices.
WTI crude for July delivery traded at $66.94 a barrel on the NYME, up 30 cents. The contract climbed 28 cents to $66.64 on Wednesday. Total volume traded on Thursday was 21 per cent below the 100day average. Brent futures for August settlement traded at $76.80 a barrel on the ICE, up 6 cents.