Oil prices recover ahead of Iran-Iraq talks

AFP, LONDON: Crude prices recovered yesterday before a meeting between the Iranian and Iraqi oil ministers following a Saudi Arabia-Russia agreement to freeze output.
In early afternoon London deals, Brent North Sea crude for delivery in April jumped $1.02 to $33.20 per barrel.
US benchmark West Texas Intermediate for March delivery added 64 cents to $29.68 a barrel from Tuesday’s closing level.
Oil prices have tumbled about 70 per cent since June 2014, hit by oversupply, sluggish demand and concerns over the global economic outlook. Prices have come under renewed pressure from Iran’s return to world markets after the lifting last month of international sanctions linked to its nuclear programme.
The commodity had enjoyed a surge from Friday to early Tuesday as Moscow and Riyadh—the world’s two biggest producers—prepared for talks on a rout that has seen the cost of a barrel collapse and hammered global markets.
But the conditional agreement between Saudi Arabia—the de facto leader of OPEC—Russia, Venezuela and Qatar to freeze output at record January levels, rather than make cuts, left a bad taste in the mouths of traders, sending both main contracts into reverse.
The meeting in Tehran between historic rivals Iran and Iraq—as well as Venezuela—provided some support for the beleaguered commodity Wednesday.
“Sharp price falls were (Tuesday’s) market response to the joint decision of Saudi Arabia, Russia, Qatar and Venezuela to freeze their oil production at the January level for the time being.”

Oil prices recover ahead of Iran-Iraq talks

AFP, LONDON: Crude prices recovered yesterday before a meeting between the Iranian and Iraqi oil ministers following a Saudi Arabia-Russia agreement to freeze output. In early afternoon London deals, Brent North Sea crude for delivery in April jumped $1.02 to $33.20 per barrel. US benchmark West Texas Intermediate for March delivery added 64 cents to $29.68 a barrel from Tuesdays closing level. Oil prices have tumbled about 70 per cent since June 2014, hit by oversupply, sluggish demand and concerns over the global economic outlook. Prices have come under renewed pressure from Irans return to world markets after the lifting last month of international sanctions linked to its nuclear programme. The commodity had enjoyed a surge from Friday to early Tuesday as Moscow and Riyadhthe worlds two biggest producersprepared for talks on a rout that has seen the cost of a barrel collapse and hammered global markets. But the conditional agreement between Saudi Arabiathe de facto leader of OPECRussia, Venezuela and Qatar to freeze output at record January levels, rather than make cuts, left a bad taste in the mouths of traders, sending both main contracts into reverse. The meeting in Tehran between historic rivals Iran and Iraqas well as Venezuelaprovided some support for the beleaguered commodity Wednesday. Sharp price falls were (Tuesdays) market response to the joint decision of Saudi Arabia, Russia, Qatar and Venezuela to freeze their oil production at the January level for the time being.