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NYMEX crude gains in Asia with U.S. rig count data ahead

Published 03/10/2016, 08:02 PM
Updated 03/10/2016, 08:03 PM
© Reuters.  NYMEX crude gains in Asia
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Investing.com - Crude oil prices edged up in Asia on Friday with investors focused on rig count data in the U.S. and ongoing attempts by major producers to come to some kind of output agreement.

On the New York Mercantile Exchange, WTI crude for April delivery rose 0.74% to $37.22 a barrel.

Investors turn their attention to Friday's weekly rig count from Baker Hughes for further indications of the supply outlook on U.S. domestic energy markets. U.S. oil rigs fell by eight to 392 for the week ending on Feb. 26, moving lower for the 11th consecutive week. With the declines, the rig count fell to its lowest level since Dec. 4, 2009 and one away from an all-time record low.

Overnight, U.S. crude futures closed slightly lower on Thursday paring losses from earlier in the session, after reports surfaced that a highly-anticipated meeting between OPEC and Non-OPEC producers will not be held unless the top participants can win the support of a defiant Iran.

On the Intercontinental Exchange (ICE), Brent crude for May delivery wavered between $39.66 and $41.02 a barrel, before closing at 40.08, down 1.03 or 2.48% on the session. North Sea crude futures are also trading near 2-month highs after jumping more than 25% over the last four weeks.

The rally has been spurred by speculation that as many as 10 OPEC and Non-OPEC producers could meet on March 20 in Russia for a summit aimed at stabilizing record-low oil prices. The meeting could come weeks after the completion of the so-called Doha Agreement, in which Saudi Arabia, Russia and two other OPEC members agreed in principle to freeze output at their respective January levels.

Any hopes for a meeting, though, could be dented by Iran's absence. Iran has been hesitant to cap its output after returning to global markets last month for the first time in nearly a decade following the completion of its comprehensive nuclear deal with a host of Western Powers. By the end of 2016, Iran hopes to ramp up its exports to pre-sanction levels from 2007.

"They are not agreeing on the meeting. Why would the ministers meet again now? Iran says they will not do anything," an OPEC source from a major producer told Reuters. "Only if Iran agrees, things will change."

Oil prices fluctuated wildly in Thursday's session amid a wavering dollar. The U.S. Dollar Index jumped to as high as 98.42, before falling sharply to an intraday low of 95.94. It came as European Central Bank president Mario Draghi promised that the central bank will avoid lowering "rates further" after the Governing Council approved a wide range of easing measures on Thursday.

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