SINGAPORE: Crude prices rose in Asia Friday, extending overnight gains after Saudi Arabia’s oil minister hinted producers could agree to limit production.
Rumours have been circulating that global producers are mulling a deal to freeze output, to help stabilise the market. Prices entered a “bear” market last week, falling more than 20 percent and closing below $40 a barrel for the first time since April.
Khalid al-Falih was reported as saying Thursday that an informal meeting of Organization of the Petroleum Exporting Countries (OPEC) countries next month would be the occasion for producers to discuss “any possible action”.
Prices soared more than four percent Thursday in reaction to the minister’s comments, which were seen as a positive development in a market grappling with a supply glut.
“Oil traders were spurred into action” by the comments, said Bernard Aw, market strategist at IG Markets Singapore.
At around 0420 GMT, US benchmark West Texas Intermediate for delivery in September was up 46 cents, or 1.06 percent, at $43.95 and Brent crude for October added 32 cents, or 0.70 percent, at $46.36 a barrel.
The rebound follows a drop in prices earlier this week after official US data showed a jump in crude inventories, taking by surprise investors who expected a drawdown in supply.
