Oil prices dip on Rus­sia-Saudi talks

The Myanmar Times - - International Business -

OIL prices slipped in Asia yes­ter­day with traders dis­ap­pointed by a lack of de­tail from Rus­sia and Saudi Ara­bia on their plans to sta­bilise the mar­ket fol­low­ing talks at the week­end.

Pres­i­dent Vladimir Putin met Deputy Crown Prince Mo­hammed bin Sal­man on the side­lines of the G20 in China and said they would work to ad­dress a global glut and over­pro­duc­tion that has ham­mered prices for the past two years.

How­ever, they pro­vided no in­for­ma­tion on how they would pro­ceed, just weeks be­fore Moscow and crude car­tel OPEC meet in Al­ge­ria to dis­cuss the cri­sis.

Yes­ter­day, the US bench­mark West Texas In­ter­me­di­ate was down 0.74 per­cent, or 33 cents, at US$44.11 while Brent fell 0.81pc, or 38 cents, to $46.45.

Com­ments from In­done­sian Fi­nance Min­is­ter Sri Mulyani In­drawati on CNBC that she was “com­fort­able” with crude prices at $40-$45 a bar­rel have also added pres­sure on prices. The only Asian mem­ber of OPEC, In­done­sia ex­ported $6.4 bil­lion worth of petroleum in 2015.

The losses pared the 3pc gains on Septem­ber 2, which came after Mr Putin said Rus­sia and other pro­duc­ing na­tions should freeze out­put to sta­bilise fluc­tu­at­ing prices. Rus­sia and OPEC to­gether pro­duce half of the world’s oil.

The pre­vi­ous at­tempt at reach­ing a deal in April were scup­pered by OPEC mem­ber Iran’s re­fusal to agree to any out­put freeze, and there are wor­ries about the chances of an agree­ment can be reached in Al­ge­ria.

“At this stage, mar­kets are prob­a­bly just go­ing to take the view that it needs to see some ev­i­dence, some tan­gi­ble idea on what the agree­ment might ac­tu­ally amount to be­fore re­spond­ing to it,” Ric Spooner, a chief mar­ket an­a­lyst at CMC Mar­kets in Syd­ney, told Bloomberg News. –

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