Mubasher: Oil prices were stable on early Friday, as Saudi Arabia and Russia hinted at rising production ahead of a meeting between members of the Organisation of Petroleum Exporting Countries (OPEC) in Vienna next week.
Global benchmark Brent crude on early Friday edged up $0.3 to $75.97 per barrel (pb), after shedding $0.80 in the previous session, while US Nymex futures went up $0.5 to $66.94 pb, after tapping a two-week high of $67.16 pb in the last settlement.
Brent and Nymex hit three-year-and-half record last month, but have since slid as US production increases and OPEC and non-OPEC producers seemingly ready to boost market supply.
However, prices had some gains, following attacks in Libya that led to shutting major Libyan oil ports on Thursday, cutting production by 240,000 barrels per day (bpd).
It is worth noting that the steady prices ahead of Baker Hughes data pertaining oil rig count in the US due later in the day.
Following his meeting with Saudi Energy Minister Khalid al-Falih in Moscow, Russia’s Energy Minister Alexander Novak stated on Thursday that both countries approved initially of a gradual exit the OPEC-led supply cut deal.
“We in general support this [...] but specifics we will discuss with the ministers in a week,” Novak said, adding that one option would include gradually ramping up production by 1.5 million barrels per day (bpd), possibly effective from 1 July.
Meanwhile, the Saudi Energy Minister confirmed that the OPEC meeting would result in an agreement that would satisfy the market, while providing no other specifics regarding any deal that could be reached after the talks.
OPEC and its non-OPEC allies, including Russia, will be meeting in Vienna on 22 and 23 June.
“The shape of the deal is far from certain yet given the Russians seem to want a more aggressive wind back than most of OPEC,” futures brokerage AxiTrader chief market strategist Greg McKenna said in a note, predicting that the increase will likely be less than 1 million bpd that “the US is supposed to have asked Saudis for.”
By 7:36 am GMT, Brent crudes fell 0.30% to $75.71 pb, while Nymex futures shed 0.07% to $66.84 pb.
