Oil prices ascend in Asia as output meeting approaches
With Brent climbing back above $40, the oil prices leaped in Asian trade today, as the market digested falling US output ahead of a producers’ meeting this month to discuss a proposed output freeze.
In 11 weeks, the US production fell for the 10th time, to 9 million barrels per day in the week up to April 1. According to data from the US Energy Information Administration was this the lowest level since November 2014.
In the world’s top oil consumer, Commercial crude stockpiles dropped as well, indicating stronger demand.
US benchmark West Texas Intermediate Brent crude for June was up 62 cents, or 1.57%, at $40.05. May delivery climbed 76 cents, or 2.04%, to trade at $38.02.
In response to the decline in US crude inventories, the Prices had fallen yesterday after a 5% rally on Wednesday.
At the meeting on April 17 in Doha traders are setting their sights among crude producers led by Russia and Saudi Arabia to discuss measures to stabilise prices, including an output freeze at January 2016 levels. There have been conflicting signals on whether such an agreement would be reached.
Saudi Arabia has said it will only agree to limits if others followed suit, while Iran said it is still ramping up production after Western economic approvals were lifted only in January.
