Oil prices rose modestly in Asia on Monday ahead of a producers’ meeting this week that might agree to cap supplies.
But analysts warned that optimism should
be tempered by experience of two years of gluts and disagreement among
members of the Organization of Petroleum Exporting Countries (OPEC).
OPEC and Russia are slated to begin
meeting later Monday on the sidelines of the International Energy Forum
in Algiers, looking for ways to stabilise prices that have been
depressed since 2014.Pre-forum talks last week between OPEC kingpin
Saudi Arabia and member Iran were bleak, with neither willing to commit
to freezing production, sending prices plunging more than 3.0 percent on
Friday.
However, both major contracts rebounded
on Monday after Algeria’s energy minister said all options were still on
the table, said OANDA market analyst Jeffrey Halley.
“With OPEC meeting on the sidelines of
International Energy Forum for the next three days, and with the first
(US) presidential debate happening tomorrow morning Asia time, expect
oil to move on comments that range from hope to reality,” he said.
At about 0740 GMT US benchmark West
Texas Intermediate for November delivery was up 29 cents at $44.77 while
Brent crude gained 23 cents to $46.12.
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