Oil rebounds back above $32

AFP, LONDON: Oil prices rallied sharply yesterday, regaining $32 per barrel as traders mulled talk of an OPEC-Russia coordinated output cut to curb oversupply.
At about 1800 GMT, Brent North Sea crude for delivery in March jumped $1.84 at $32.34 per barrel.
US benchmark West Texas Intermediate for March added $1.69 to $32.03 a barrel compared with Monday’s close.
The market also rebounded as traders took the opportunity to snap up cheap crude, having hit 12-year lows last week on chronic oversupply.
“Vague talk of a possible joint production cut with Russia and OPEC is doing the rounds again,” noted CMC Markets analyst Jasper Lawler.
“Any joint action seems unlikely since US shale producers would just use the resulting higher prices as an opportunity to ramp up their own  (output) again.”
The Kuwaiti and Iraqi oil ministers declared Tuesday that OPEC will not cut production unless producers outside the cartel do the same, despite plunging crude prices that have ravaged its revenues.

Oil rebounds back above $32

AFP, LONDON: Oil prices rallied sharply yesterday, regaining $32 per barrel as traders mulled talk of an OPEC-Russia coordinated output cut to curb oversupply. At about 1800 GMT, Brent North Sea crude for delivery in March jumped $1.84 at $32.34 per barrel. US benchmark West Texas Intermediate for March added $1.69 to $32.03 a barrel compared with Mondays close. The market also rebounded as traders took the opportunity to snap up cheap crude, having hit 12-year lows last week on chronic oversupply. Vague talk of a possible joint production cut with Russia and OPEC is doing the rounds again, noted CMC Markets analyst Jasper Lawler. Any joint action seems unlikely since US shale producers would just use the resulting higher prices as an opportunity to ramp up their own (output) again. The Kuwaiti and Iraqi oil ministers declared Tuesday that OPEC will not cut production unless producers outside the cartel do the same, despite plunging crude prices that have ravaged its revenues.