Oil Price at $45 per Barrel, Waiting for Possible Stabilization in Algeria

A worker walks past oil pipes at a refinery in Wuhan

Saudi Arabia and non-OPEC member Russian Federation agreed this month to cooperate in oil markets, saying they could limit future output.

BMI Research told the news agency: “OPEC members will not agree on a production freeze”.

Brent for November settlement rose as much as 69 cents, or 1.5 percent, to $46.57 a barrel on the London-based ICE Futures Europe exchange.

State oil firm Saudi Aramco has stakes in more than 5 million bpd of refining capacity at home and overseas, placing it among the global leaders in making oil products.

Venezuelan President Nicolas Maduro said on Sunday that OPEC and other major oil producers were close to reaching a deal on price stability that could be announced later this month.

Prices jumped after the U.S. Energy Information Administration (EIA) stunned the market when it said crude inventories fell 6.2 million barrels last week.

In the United States, crude stocks fell 14.5 million barrels for the week ended September 2, the biggest weekly drawdown in 15 years.

Major oil producers from the Organization of the Petroleum Exporting Countries (OPEC) and also Russian Federation plan to meet in Algeria next week to discuss measures to rein in the oversupply, but analysts said they did not expect significant cuts to production.

US gasoline futures RBc1 opened 0.3 percent higher at $1.4659 per USA gallon after rising 2 percent on Friday because of outages on Colonial Pipeline’s main gasoline line and in a key unit of BP Plc’s BP.L refinery in Whiting, Indiana.

At around 0650 GMT, US benchmark West Texas Intermediate was down 19 cents to $43.11 and Brent dipped 16 cents to $45.79.

US crude stockpiles dropped by 7.5 million barrels last week, the American Petroleum Institute was said to report Tuesday.

Market participants had expected an increase of 3.4-million barrels, according to a Reuters poll.

The Organization of the Petroleum Exporting Countries and Russian Federation are due to hold an informal gathering in Algeria at the end of September to talk about freezing oil production levels.

Further support for sentiment that energy markets have slipped back toward the supply side pushed crude oil prices sharply lower in early Tuesday trading. Crude oil price could be aided by a plunge in the U.S. Dollar if the Bank of Japan misses with its new plan to stimulate the economy. Earlier this month, Mohsen Ghamsari, director for worldwide affairs at state-run National Iranian Oil Co., said the Algiers meeting will be too soon for Iran to discuss freezing production.

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