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Oil prices push higher after Saudi Arabia and Venezuela hold talks

Published 02/08/2016, 03:47 AM
© Reuters.  Oil rises after Saudi Arabia and Venezuela hold talks
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Investing.com - Oil prices pushed higher in Europe trade on Monday, after Saudi Arabia and Venezuela met to discuss cooperating to stabilize the market over the weekend.

Saudi Arabia's oil minister Ali al-Naimi discussed cooperation between OPEC members and other oil producers to stabilize the global oil market with his Venezuelan counterpart, Eulogio Del Pino, on Sunday, according to state news agency SPA.

"It was a successful meeting and conducted in a positive atmosphere," SPA cited Naimi as saying.

On the ICE Futures Exchange in London, Brent oil for April delivery rose 48 cents, or 1.42%, to trade at $34.54 a barrel by 08:45GMT, or 3:45AM ET.

Elsewhere, crude oil for delivery in March on the New York Mercantile Exchange tacked on 35 cents, or 1.11%, to $31.24 a barrel.

Meanwhile, Brent's premium to the West Texas Intermediate crude contract stood at $3.30, compared to a gap of $3.17 by close of trade on Friday.

Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by the Organization of the Petroleum Exporting Countries last year not to cut production in order to defend market share. Oversupply issues will be exacerbated further as Iranian exports return to the global oil market.

In the week ahead investors will be looking ahead to supply data from industry group the American Petroleum Institute on Tuesday ahead of Wednesday’s weekly government report on stockpiles.

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