Tuesday, February 16, 2016

Crude oil rises after agreement of 4 large impair its production – ElTiempo.com

World decpetróleo major exporters, including Russia and Saudi Arabia, agreed on Tuesday to freeze oil production to cope with oversupply but said the move will depend on other producers, since Iran did not participate in the meeting and plans to increase shipments.

the oil ministers of Russia, Saudi Arabia, Qatar and Venezuela visited Doha for a meeting, the highest level in months to discuss a joint to help prices recover from lows in more than a decade action.

for its part, Iran is ready to freeze discuss oil production once your pump has reached the pre-Western sanctions levels, said a source familiar with the Iranian strategy, highlighting Tehran’s reluctance to reduce supplies.

benchmark Brent futures climbed 1.77 percent this morning to $ 33.99 a barrel and slightly pared gains after rising to a high of $ 35.55 earlier in the day, the highest since Feb. 4.

Meanwhile, futures US crude oil (WTI) totaled 49 cents, or 1.66 percent, to $ 29.92 a barrel, some distance from its peak of $ 31.53 session

The Saudi Oil Minister Ali al-Naimi said freeze production levels in January was a proper decision and that could be considered new measures to stabilize the market in the coming months.

“We have to freeze (pumping) levels January is suitable for the market (…) recognize today that supplies are falling prices and the demand is increasing, “Naimi said.

” the why we agreed to freeze production is simple, is the beginning of a process that will assess in the coming months and decide if we need other measures to stabilize and improve the market, “he said.

Naimi also said he expected other producers to adopt the proposal, while Venezuelan Oil Minister, Eulogio Del Pino, said he would hold further talks with Iran and Iraq on Wednesday.

” Tomorrow we will meet with the ministers of Iran and Iraq in Tehran and hope that the minister of Qatar go with me to discuss with them the basis of this agreement, which is very important to stabilize the market, “said Del Pino.

oil prices rose to $ 35.55 a barrel, but then pared gains to trade down $ 34 to dissipate expectations of an immediate agreement. Iran has pledged to increase strongly supplies next month as it seeks to regain lost market share after years of international sanctions that were lifted in January.

The meeting in Doha place after more than 18 months of decline in oil prices, weakening the barrel below $ 30 for the first time in more than a decade.

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