Pump jacks are seen at the Lukoil company owned Imilorskoye oil field, as the sun sets, outside the West Siberian city of Kogalym, Russia, January 25, 2016. REUTERS/Sergei Karpukhin

Crude oil prices pushed higher on Wednesday after Iran said it was open to cooperation with Saudi Arabia, partly recovering from an 8 percent fall in the previous session led by concerns over demand and weak equities.

Prices were supported by comments from Iran’s oil minister that Tehran is ready to negotiate with Saudi Arabia over the current conditions in global oil markets.

The International Energy Agency (IEA), meanwhile, said the Organization of Petroleum Exporting Countries (OPEC) is unlikely to cut a deal with other producers to reduce ballooning output. It predicted the world will store unwanted oil for most of 2016 as declines in U.S. oil output take time.

“Another day of heightened volatility is expected as concerns over global growth prospects remain elevated,” analysts at ANZ said in a note.

The front-month Brent contract LCOc1 was 75 cents, or 2.5 percent, higher at $31.07 a barrel by 0219 GMT (9.19 a.m. EDT). The contract fel for a fourth straight session on Tuesday to end down $2.56, or 7.8 percent.

U.S. crude for March delivery CLc1 was 58 cents higher at $28.52 a barrel. The contract fell 5.9 percent on Tuesday to settle $1.75 lower.

Further weighing on prices on Tuesday, the U.S. Energy Information Administration (EIA) lowered its 2016 oil demand growth forecast to 110,000 barrels per day (bpd) from a growth of 160,000 bpd previously.

“Oil remains susceptible to further weakness as the market digests (Tuesday’s) data,” ANZ said.

Oil investors will turn to weekly inventory data by U.S. Energy Information Administration (EIA) later on Wednesday, with analysts surveyed by Reuters predicting a 3.6 million-barrel rise in crude stocks last week. <EIA/S>

ALSO READ  Israeli jets carry out airstrikes on 9 targets in northern Gaza Strip

The American Petroleum Institute (API), an industry group, reported a build of 2.4 million barrels in U.S. crude stockpiles for last week. <API/S>

Seeking additional protection against wild swings in prices, oil traders have scrambled to scoop up options, sending a key index to its highest level since the worst of the global economic crisis in 2008, data showed.

 

Reuters

Advertisements
Share this article:
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
The International News Desk reports on issues and events world wide.

Notice: All comments represent the view of the commenter and not necessarily the views of AMN.

All comments that are not spam or wholly inappropriate are approved, we do not sort out opinions or points of view that are different from ours.

This is a Civilized Place for Public Discussion

Please treat this discussion with the same respect you would a public park. We, too, are a shared community resource — a place to share skills, knowledge and interests through ongoing conversation.

These are not hard and fast rules, merely guidelines to aid the human judgment of our community and keep this a clean and well-lighted place for civilized public discourse.

Improve the Discussion

Help us make this a great place for discussion by always working to improve the discussion in some way, however small. If you are not sure your post adds to the conversation, think over what you want to say and try again later.

The topics discussed here matter to us, and we want you to act as if they matter to you, too. Be respectful of the topics and the people discussing them, even if you disagree with some of what is being said.

Be Agreeable, Even When You Disagree

You may wish to respond to something by disagreeing with it. That’s fine. But remember to criticize ideas, not people. Please avoid:

  • Name-calling
  • Ad hominem attacks
  • Responding to a post’s tone instead of its actual content
  • Knee-jerk contradiction

Instead, provide reasoned counter-arguments that improve the conversation.