OIL PRICES: ABOUT $48
NASDAQ wrote, Crude oil futures continued to climb in early Asian trade Tuesday, as traders assessed the prospect of a supply cut following cooperation pledges from Saudi Arabia and Russia.
Light, sweet crude for October delivery rose 84 cents, or 1.9%, to $45.28 a barrel in the Globex electronic session. November Brent crude added six cents, or 0.1%, to $47.69 a barrel.
The news initially sent prices rising by as much as 5%, but futures pared their gains significantly before their close in New York. The two countries stopped short of outlining specific production cuts, and skepticism remains over whether any will be forthcoming, given a failure by major producers to strike deals on output cuts in recent years.
"Whether it's going to prove to be a toothless tiger or something with a little more force behind it remains to be seen" said Stuart Ive, a private client manager at OM Financial.
Saudi Arabia's willingness to join hands with Russia is further evidence of the trouble the biggest oil producer in OPEC is having in reaching any production agreements with Iran and other members of the group, Ive said.
"The Saudis were fed up with OPEC being the watchdogs of global prices ... and want more participation from non-OPEC members," he said.
Oil prices have spent most of the summer swinging between $40 and $50 a barrel, as a persistent oil glut continues to keep any big rally in check.
Nymex reformulated gasoline blendstock for October--the benchmark gasoline contract--rose 163 points to $1.3179 a gallon, while October diesel traded at $1.4295, 199 points higher.
ICE gasoil for September changed hands at $416.00 a metric ton, up $1.75 from Monday's settlement.
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AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.