Oil climbs as Venezuela sees output deal
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[September 19, 2016]
By Dmitry Zhdannikov
LONDON (Reuters) - Oil prices rose on
Monday from multi-week lows after Venezuela said OPEC and non-OPEC
producers were close to a deal to stabilize the market and as clashes in
Libya disrupted attempts to boost crude exports.
Brent crude futures were at $46.32 per barrel at 1043 GMT, up 55 cents
from their previous settlement and off an earlier peak of 46.62. U.S.
crude was up 61 cents, or 1.4 percent, at $43.64 a barrel.
Venezuelan President Nicolas Maduro has said a deal could be announced
this month to stabilize oil markets, which have come under pressure due
to persistent oversupply.
"We think there is a great window of opportunity for a freeze here,"
Natixis analyst Deshpande Abhishek said. "It will not just help balance
the markets, but it is also a win-win for OPEC and Russia, as Iran is
unlikely to add extra production anyway for the next 6-12 months."
Crude exports from OPEC's third biggest producer Iran jumped 15 percent
in August from a month ago to more than 2 million barrels per day,
according to a source with knowledge of its tanker loading schedule,
closing in on shipment levels seen five years ago before Western
Last week, Brent hit a two-week low and U.S. crude fell to a five-week
low on concerns about oversupply with more deliveries from Libya and
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A pump jack operates at a well site leased by Devon Energy
Production Company near Guthrie, Oklahoma September 15, 2015.
On Monday, prices were also supported by a weaker dollar and as the
expected boost to Libyan exports was delayed.
Clashes in Libya have halted the loading of the first oil cargo from the
port of Ras Lanuf in close to two years and raised fears of a new
conflict over Libya's oil resources.
However, concerns about rising supplies remain a bugbear. A
preliminary Angolan November loading plan showed supplies were set
to bounce back from a 10-year low.
In the United States, drillers have added oil rigs for 11 out of the
past 12 weeks.
(Additional reporting by Mark Tay in Singapore; editing by Himani
Sarkar and David Clarke)
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