OIL STABILITY IN QUESTION

dubai — Oil slipped back to around $60 a barrel on Wednesday as Saudi Arabia said it would not cut oil output on its own.

As the markets await a key decision by Opec and allies on December 6 on an output cut to trigger the price rally, volatility and uncertainty persisted amid rising US inventories.

US crude stockpiles rose last week, the American Petroleum Institute (API) industry group said on Tuesday before Saudi Arabia dampened hopes of production cuts by Opec and its allies by saying on Wednesday that it would not act alone and Nigeria stopped short of committing to a new push to curb supplies.

The API said that US crude stocks rose by 3.5 million barrels, more than analysts forecast.

Saudi Energy Minister Khalid Al Falih in a meeting with Nigerian oil minister Emmanuel Ibe Kachikwu said signals from fellow Opec members Iraq, Nigeria and Libya were positive ahead of the December 6 Opec meeting in Vienna as all ministers were keen to bring back stability to oil markets.

Russian President Vladimir Putin said current oil prices around $60 a barrel are “absolutely fine” for his country.

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Brent price on June 19, 2014 Brent price on January 20, 2016

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Brent price seen for next month