Oil climbs in the third session of gains due to hopes of an agreement to cut producti
Oil climbs in the third session of gains due to hopes of an agreement to cut production January 29, 2016 8:09
NEW YORK (Reuters) - Oil prices rallied for a third straight session on Thursday, supported by hopes of reaching a first global agreement in more than ten years between oil producing countries to assist in the removal of a glut in supply markets rein in prices in more than a year and a half.
It jumped prices by up to 8 percent after the Russian Energy Minister Alexander Novak said that Saudi Arabia has proposed that oil-producing countries cut production by up to 5 percent, which means for Russia, the largest oil producer in the world -the but not a member of the Organization Oopk- about 500 thousand barrels per day.
But prices pared their gains with growing doubts about the deal to cut output after it said media reports that OPEC delegates have not heard yet of any plans for talks and Saudi Arabia did not propose cuts in production.
And Barclays Bank analysts wrote in a report, "There is a vast difference between a meeting to exchange views on the state of the markets and Congress to agree on a production cut."
And it ended the global Brent crude contracts for the nearest maturity of the trading session high just 79 cents or 2.4 percent to $ 33.89 a barrel after it was jumped at the highest level in the session to $ 35.84.
The US crude contract closed 92 cents higher, or 2.9 percent, to $ 33.22 a barrel after recorded during the session higher level stood at 34.82