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Oil has grown above $ 46 on the statement of the Algerian Minister of Energy

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Oil has grown above $ 46 on the statement of the Algerian Minister of Energy

Oil has grown above $ 46 on the statement of the Algerian Minister of Energy
September 26
10:30 2016

Oil quotes have soared by about 1% on Monday morning because of the statements of  the Algerian Energy Minister Noureddine Boutarfa. He announced his optimistic expectations from the meeting of oil-producing countries scheduled for Wednesday. In addition, a cut of oil prices has been supported the sagging dollar.

Saudi Arabia and Iran have held consultations before the Algerian negotiations. The Saudi Kingdom has made a proposal to reduce the oil production to the level of January on the condition that Iran will not increase the production of raw materials.

On the London Stock Exchange futures contracts for Brent crude oil for November have increased by 0.7% to $ 46.21 per barrel to the beginning of the day.

By this time the November contracts for the US WTI crude oil have increased by 0.6% to $ 44.75 per barrel on trading on the New York Mercantile Exchange.

On Friday prices fell by almost 4% on the background of the market uncertainty  that the Saudi Kingdom and Iran would be able to reach agreement and coordinate common actions.

Most analysts agree that, probably, during the meeting the oil producing countries will not be able to reach any agreement, but the next step in the search for understanding can be made.

Morgan Stanley experts predict that the meeting will end without the official statement. Probably, a common document that the market should be stabilized will be adopted. But the experts forecast that the document will not assume any obligations from the part of the participants.

Jan Stuart, analyst at Credit Suisse, doubts that the Algerian meeting will end with something constructive. Nevertheless, he thinks that the oil producers can publish the scheme of the possible transaction, which will be discussed in the future.

At the weekend Noureddine Boutarfa, the Algerian Minister of Energy, told the media representatives that the delegation of the countries couldn’t leave Algeria “empty-handed”. According to the minister, if the participants of the meeting reach an agreement about at least certain elements of the transaction on the freeze or reducing the oil production, the negotiations will continue at the Vienna OPEC meeting on 30 November.

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