LON­DON Oil down on Saudi output deal doubts

The Myanmar Times - - International Business -

OIL prices fell sharply on Septem­ber 23, wip­ing out much of the gains, af­ter re­ports that Saudi Arabia is down­play­ing prospects of a pro­duc­ers deal on output this week.

The key bench­marks Brent crude and West Texas In­ter­me­di­ate (WTI) both lost more than 3 per­cent as ear­lier hopes faded for the informal meet­ing of OPEC pro­duc­ers and Rus­sia in Al­giers.

The losses came af­ter Bloomberg re­ported that an OPEC del­e­gate “fa­mil­iar with Saudi Ara­bian pol­icy” said Riyadh did not ex­pect any deal to limit output.

Ear­lier, the mar­ket had been en­cour­aged by an­other un­con­firmed re­port that the Saudis were talk­ing with Iran about a mu­tual deal to freeze pro­duc­tion.

Rus­sia and mem­bers of the OPEC oil car­tel led by Saudi Arabia are at­tend­ing the In­ter­na­tional En­ergy Fo­rum in Al­giers be­gin­ning to­day, with informal talks on coun­ter­ing the mar­ket glut planned for the side­lines of the three-day event.

Traders are un­cer­tain that a deal can be reached on main­tain­ing, much less cut­ting, output lev­els.

Re­ports that Saudi Arabia, Iran and Qatar had met at the OPEC head­quar­ters in Vi­enna had fuelled op­ti­mism.

An ear­lier Saudi-led at­tempt to freeze output fell apart in April af­ter Iran re­fused to par­tic­i­pate, say­ing it needed to raise pro­duc­tion de­pleted by years of West­ern eco­nomic sanc­tions, which were lifted only in Jan­uary.

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