Oil rises to $48/barrel

   

   Global oil benchmark, Brent crude,rose by 2.6 per cent to $48.20 per barrel.The rise in price came as an indication that the Organisation of Petroleum Exporting Countries could revive talks on freezing oil output levels when it meets non-OPEC nations next month.

OPEC members will meet on the sidelines of the International Energy Forum, which groups producers and consumers, in Algeria on September 26-28.Top exporter, Saudi Arabia, appears to favour higher prices, although Iran, Iraq and Russia present obstacles to a deal, according to Reuters.

Saudi Arabia sharply raised expectations for a global production deal, with its Energy Minister, Khalid al-Falih, saying the country would work with OPEC and non-OPEC members to help stabilise oil markets.“The comments by the Saudi energy minister give a positive indication that they are willing to go for a freeze deal but the question remains: on what level?” said an OPEC source from a key Middle Eastern producer.

“Will the freeze be at January levels? And what about Iran? And then there is Nigeria, which has lost a lot of production since January,” the source added.

The Russian Energy Minister, Alexander Novak, was quoted as saying that Russia was consulting with Saudi Arabia and other producers to achieve oil market stability, adding that the door was still open for more discussions on output freeze, if needed.


Saudi Arabia boosted output to 10.67 million barrels per day in July from 10.2 million in January, when the freeze idea first emerged.