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Oil prices drop ahead of producer’s meeting
September 20, 2016, 10:58 am

Prices at the pump have fallen in many countries [Xinhua]

Prices at the pump have fallen in many countries [Xinhua]

Oil prices edged lower on Tuesday on fears of saturation in US crude oil stocks despite market hopes for an agreement between OPEC and non-OPEC countries on capping output.

US benchmark West Texas Intermediate crude fell 0.46 per cent to $43.10 at press time, while international benchmark Brent crude fell 0.54 per cent to $45.70.

Oil prices were also dragged down by statements from Venezuelan Oil Minister Eulogio Del Pino who said that oil markets were oversupplied by about 10 per cent.

Late on Monday, Venezuelan President Nicolas Maduro said that OPEC and non-OPEC countries had almost reached a deal to stabilize oil markets and prices, adding that he expected the deal to be announced before the end of the month.

Maduro’s comments came at the end of the Non-Aligned Movement summit held in Venezuela on Sunday.

He said: “We had a long bilateral meeting with [Iranian President Hassan] Rouhani. We’re close to a deal between OPEC producer countries and non-OPEC.”

Meanwhile, according to the Iranian oil ministry news agency, SHANA, Rouhani said that Tehran would support any move to stabilize the global oil market and raise prices.

OPEC members are meeting in Algiers this month amid speculation that a deal to curb output could be reached.

Algeria’s state news agency cited government sources who said that if they manage to reach a consensus at that gathering, they may call an extraordinary meeting to discuss oil prices.

Algerian Energy Minister Noureddine Bouterfa expressed optimism in an interview with Reuters Tuesday that some kind of deal could be worked out next week.

Earlier this month, Russian President Vladimir Putin said it was time for major oil producers – such as Russia and OPEC – to agree to an output cap.

This is the first time the Russian president weighs in publicly on what has become a farce among oil investors and analysts as repeated year-long efforts to reach consensus among major producers have collapsed.

The BRICS Post with inputs from Agencies

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