Oil rebounds by more than $ 1 a barrel after rising prices in Saudi Arabia – .

Oil rebounds by more than $ 1 a barrel after rising prices in Saudi Arabia – .

  • Saudi Arabia raises monthly crude prices to Asia and the United States
  • US-Iran indirect nuclear talks halt until this week

SINGAPORE, Dec. 6 (Reuters) – Oil prices rose more than a dollar a barrel on Monday after the main exporter, Saudi Arabia, raised the prices of its crude sold to Asia and the United States. United, and as indirect US-Iranian talks on relaunching a nuclear deal appeared to be at an impasse.

Brent crude futures for February gained $ 1.39, or 2%, to $ 71.27 a barrel at 0458 GMT, while US West Texas Intermediate crude for January was at $ 67.66 a barrel , up $ 1.40, or 2.1%.

Saudi Arabia on Sunday raised official January selling prices for all grades of crude sold to Asia and the United States up to 80 cents from the previous month. Read more

Register now for FREE and unlimited access to reuters.com

The price hikes were implemented despite a decision last week by the Organization of the Petroleum Exporting Countries and their allies, including Russia, a group known as OPEC +, to continue increasing supplies of 400,000 barrels a day in January. Read more

Prices were also supported by the dwindling prospects for increased Iranian oil exports after the collapse of indirect US-Iran talks on the bailout of the 2015 Iran nuclear deal last week. EU officials expressed dismay on Friday at the sweeping demands of the new hard-line Iranian government. Talks are expected to resume mid-week. Read more

“While the (OPEC +) group argued the decision was purely based on market fundamentals, it’s hard not to see the U.S. hand at stake, especially given this week’s visit by a delegation American in the kingdom ”, advises JBC. Energy said in a note.

“It is almost certain that the Iranian situation has been discussed, and Saudi Arabia’s approval of the increase in production suggests that a compromise has been reached and that an improvement in relations with the Biden administration is considered. “

Despite the expected increase, Russia’s total production has not increased as its main producers are likely to face technical difficulties in increasing production in accordance with the current agreement, the consultancy said.

Both benchmarks rebounded after falling last week for their sixth consecutive week for the first time since November 2018 amid concerns that the new variant of the Omicron coronavirus could impact global economic growth and demand for fuel.

In another sign of the turmoil sparked by the ever-evolving pandemic, the head of the International Monetary Fund has said the global lender is likely to lower its estimates of global economic growth due to the new variant. Read more

Consulting firm JBC Energy has downgraded its outlook for basic crude demand for December and January by some 300,000 barrels per day.

The revision wiped out most of the tight supply the market had seen before, he added.

Omicron spread to about a third of U.S. states on Sunday. Read more

Register now for FREE and unlimited access to reuters.com


Reporting by Florence Tan; Editing by Stephen Coates

Our Standards: Thomson Reuters Trust Principles.


Please enter your comment!
Please enter your name here