Crude stocks surged following Saudi Arabia’s positivity about the ability of the Organization of the Petroleum Exporting Countries to conclude an agreement to limit output.
Stock was amplified after Saudi Energy Minister Khalid al-Falih said he is very hopeful that OPEC will manage to settle a production-cut deal. He made his comments in an interview with Saudi-owned al-Arabiya TV.
Oil prices had been on the up earlier Thursday after prospects of an OPEC agreement dwarfed U.S. data that exposed another large weekly increase in crude records. U.S. stocks of crude oil increased more than forecasts to 5.27 million barrels, while the impact was weakened by a fall in output and augmented capacity use by refineries.
Crude prices have been beleaguered due to the overlook of growing international oil supplies despite vows of reductions.
Meanwhile OPEC, the 14-country’s alliance that wheels over a third of the world’s oil, is aiming to reinforce a deal to cut production to between 32.5 million and 33 million barrels a day from record levels of 33.83 million barrels a day in October.
According to reports, Saudis Al-Falih was about to see his counterparts, Russia’s Alexander Novak and Qatar’s Mohammed Saleh Al Sada, on the sidelines of the Gas Exporting Countries Forum, in Doha on Thursday.
However following the September summit, some of the oil pumping nations in OPEC have simply excused from any output control deal, like Iraq has said it cannot stop oil production to back its ongoing war against Islamic State.
Brent crude the global oil benchmark, rose 85 cents, or 1.8%, to $47.50 a barrel in London. On the New York Mercantile Exchange, West Texas Intermediate futures also surged 1.7%, or 74 cents, to $46.31 a barrel.