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Brent Crude Tops $50, WTI Joins Rally

August 18, 2016 at 20:41 by Vladimir Vyun

Crude oil rallied today, with the Brent grade rising above the $50 level, as speculations about an output ceiling persist. There are reports that major oil producers are going to meet in Algeria next month to discuss the matter.

Yet specialists feel strong skepticism above the possibility of production freeze. It does not look very likely that the discussion will yield a positive result, and keeping production at the current level may not help prices anyway.

Nigerian oil minister Emmanuel Ibe Kachikwu added his voice to skeptics, saying to reporters today:

Are we cutting volumes? I don’t see that happening.

Nevertheless, he showed Huge Bounce House optimism about the planned meeting in September:

Will that meeting help lift the price? Well yes if we succeed in having conversations with Russia, the USA and Mexico.

Futures for delivery of WTI crude oil in September jumped 3.27% to $48.32 per barrel as of 20:31 GMT on NYMEX today. October contract for Brent crude advanced 2.07% to $50.88 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

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