Oil Climbs as Producers Plan to Meet Next Month in Doha 3/16/2016
Oil Climbs as Producers Plan to Meet Next Month in Doha
3/16/2016 0 Comments
Oil rallied after the biggest two-day slump in a month as some OPEC members planned to meet with other producers next month to resume talks on capping production.
Futures advanced as much as 2 percent in New York after falling 5.6 percent the previous two sessions, the biggest two-day slide since Feb. 11. Members of the Organization of Petroleum Exporting Countries and non-OPEC producers plan to meet on April 17 in Doha to discuss a proposal to freeze output, according to Qatar’s energy minister. Inventories expanded by 1.5 million barrels last week, the American Petroleum Institute was said to report. That’s the smallest reported increase by the API in four weeks.
“We will now see if OPEC and Russia are able to freeze the bears in the oil market,” said Olivier Jakob, managing director at consultants Petromatrix GmbH. “The significance of the agreement is that it could remove the perception that OPEC is fighting for market share.”
Oil has rebounded after slumping to a 12-year low this year on speculation a global surplus will ease amid stronger demand and falling U.S. output. American crude stockpiles probably rose by 3.2 million barrels last week, according to a Bloomberg survey before government data Wednesday. That would keep supplies at the highest level in more than eight decades.
West Texas Intermediate for April delivery advanced as much as 73 cents to $37.07 a barrel on the New York Mercantile Exchange and was at $36.97 at 9:29 a.m. London time. The contract fell 84 cents to $36.34 on Tuesday. Total volume traded was about 19 percent below the 100-day average.
Brent for May settlement climbed as much as 59 cents, or 1.5 percent, to $39.33 a barrel on the London-based ICE Futures Europe exchange. The contract dropped 79 cents to $38.74 on Tuesday. The global benchmark crude was at a premium of 50 cents to WTI for May.