Crude oil prices have seen another rise early this morning in the wake of talks by exporters about the current supply glut.
Brent crude was trading at $46.12 per barrel and WTI at $43.7 per barrel, showing an increase of $0.8 and $2, respectively, from the last close.
The market push has been attributed to a statement by Saudi Arabia’s Energy Minister Khalid al-Falih, saying that oil producers are expected to discuss price stabilisation during a meeting in Algeria in September.
Oil Prices Rise on the Back of New Output Talks
The members of the Organisation of Petroleum Exporting Countries (OPEC) are expected to meet on the sidelines of the International Energy Forum (IEF) in Algeria, this September.
According to media sources, Minister Khalid al-Falih said this will be an opportunity for OPEC and major exporting non-OPEC ministers to discuss ways to stabilise oil prices.
OPEC Meeting in June 2016
According to al-Falih, it will take some time for the market to recover, but the current situation is unsustainable and prices need to go up to reverse the current decline in investment and output.
In June, Saudi Arabia had said it would not increase output, during the last OPEC meeting, showing a concern that oil prices could go back down amid oversupply.
Russia and Iran Fight Output Freeze
Price levels have been supported by reports that some OPEC members could be freezing production.
However, Russia and Iran have dismissed the proposal, in an attempt to raise production levels.
A recent outlook published by the International Energy Agency (IEA) said that the supply and demand balance, are expected to tighten towards the end of this year.
According to traders, a decrease in China’s output to a five-year low has also lifted prices, as it means the country will need to import more crude.
However, China’s demand has also suffered a severe downfall.