Mubasher TV
Contact Us Advertising   العربية

Oil falls as talks about freeze likely to end in deadlock

Oil falls as talks about freeze likely to end in deadlock
oil glut is to continue - Photo Credit: Reuters

Mubasher: Oil prices registered today the lowest level since 4 July 2016 after declining 1% amid doubts about having a satisfactory agreement in the next oil producers' meeting.

By 3:15am GMT, Brent crude futures were trading at $50.4 per barrel, down 1%.

US West Texas Intermediate (WTI) crude was lower 34 cents at $48.8 a barrel.

Oil price rally over the last week was completely ignited by anticipations of the coming producers' meeting that will mull means to curb oversupply, said market analyst Hazem Wreykat.

Oil prices are not likely to move above the previous quotes, Wrekat added, noting that Saudi Arabia plans to increase oil production; Iraq has started pumping 70,000 barrels into Turkey daily; and Libya’s National Oil Company reopened the blockaded export terminal at Zueitina.

Moreover, China's July exports of diesel and gasoline jumped by 181.8% and 145.2% respectively compared to 1.53 million tons and 970,000 tons each for the year-ago period.

All in all, these indicators suggest that oil glut is to continue, the analyst concluded.