Oil dips in Asia as Algiers meeting looms
SINGAPORE: Oil prices edged down in Asia yesterday amid continued speculation about whether producers will agree to restrict output at talks in Algeria this week, analysts said.
Members of the Organization of the Petroleum Exporting Countries will meet Wednesday with key non- OPEC producer Russia on the sidelines of the International Energy Forum in Algiers.
They are expected to discuss ways to stabilise prices that have been depressed since 2014 amid a stubborn supply glut, with hopes producers might agree a production cap.
But while most oil producer states have been supportive of a cap, pre-forum talks between OPEC kingpin Saudi Arabia and Iran have been less productive, with neither side willing to give in.
The UAE has meanwhile said it supports a deal to freeze output if other nations agree but that production cuts are not up for discussion, according to Bloomberg News, which also reported that Nigeria backs reaching a deal.
At about 0645 GMT, US benchmark West Texas Intermediate for November delivery was down 12 cents at US$ 45.81 while Brent crude was down 24 cents at US$ 47.11. Prices had jumped around three percent Monday.
“The markets are waiting for more news out of Algeria. Trading has been thin so what we’re seeing is mostly early morning profit-taking in Asia,” OANDA senior market analyst Jeffrey Halley told AFP. — AFP