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Crude Oil Tries to Regain Footing After Big Drop

September 28, 2016 at 1:09 by Vladimir Vyun

Crude oil rose at the start of Wednesday’s session after falling more than 3% on Tuesday. Futures dropped after Iran refused the offer made by Saudi Arabia to reduce Saudi oil production if Iran freezes its output.

Members of the Organization of Petroleum Countries as well as some other major producers will meet in Algiers on Wednesday to discuss the potential cap on oil production. The talks are unlikely to result in a major decision and are just a preliminary discussion before the November’s OPEC meeting in Vienna. Still, Khalid Al-Falih, Saudi Arabia Minister of Energy, was optimistic ahead of the meeting, saying:

The gap between OPEC countries is narrowing in terms of what are the levels at which we will freeze. The opinions are getting very, very close together.

Meanwhile, the American Petroleum Institute reported that US crude oil inventories fell 752,000 barrels last week. That was the likely reason for the rise of prices during Wednesday’s early trading hours. The US Energy Information Administration will release its official data at 14:30 GMT on Wednesday. The previous report showed a drawdown of 6.2 million barrels.

Futures for delivery of WTI crude oil in November rose 0.65% to $44.96 per barrel as of 23:58 GMT on NYMEX today. Contract for Brent crude advanced 0.78% to $46.33 per barrel on ICE.

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