🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Oil moves lower as Saudi Arabia dismisses need for OPEC intervention

Published 08/26/2016, 04:18 AM
© Reuters.  Crude loses ground as Saudi minister downplays need for intervention
LCO
-
CL
-

Investing.com - Oil prices were lower in early European trade on Friday, as the Saudi energy minister shrugged off the need for OPEC to intervene to stabilize markets.
Crude oil for October delivery on the New York Mercantile Exchange shed 13 cents, or 0.27%, to trade at $47.20 a barrel by 4:10AM ET (8:10AM GMT), near the intraday low of $47.14.

On Thursday, New York-traded oil futures jumped $0.56, or 1.20%, to end at $47.33.

Meanwhile, on the ICE Futures Exchange in London, Brent oil for October delivery shed 39 cents, or 0.79%, to trade at $49.28 a barrel, after gaining $0.62, or 1.26%, to end at $49.67 in the prior session.

Crude prices soared almost $10 a barrel, or nearly 25%, in the first three weeks of August, as the prospect of an output freeze by major producers at an informal OPEC meeting in Algeria next month sparked a massive rally.

However, futures are down nearly 3% so far this week, as analysts and traders remain skeptical the meeting would result in a coherent effort to reduce the global glut.

Saudi Arabian Energy Minister Khalid Al-Falih told Reuters late on Thursday that "we don't believe any significant intervention in the market is necessary other than to allow the forces of supply and demand to do the work for us", adding that the "market is moving in the right direction" already.

An attempt to jointly freeze production levels earlier this year failed after Saudi Arabia backed out over Iran's refusal to take part of the initiative, underscoring the difficulty for political rivals to forge consensus.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.