Benchmarks post early gains

06 October 2015, News Wires – Oil prices rose in early Asia trade, adding to gains in the previous session, after Russia signalled it was willing to meet with other big oil producers to discuss the market following the decline in prices in the last quarter.

oil priceBut gains were limited with investors awaiting US government data on crude inventories this week. Some analysts are predicting the data will show further builds in crude stocks, putting oil prices under renewed pressure.

A Reuters poll on Monday indicates US crude stockpiles were up last week for a second straight week, gaining 1.8 million barrels on average in the week to 2 October.

The US Energy Information Administration, which reports official storage data on Wednesday, said last week that inventories were up about 4 million barrels in the week to 25 September.

Brent crude, the global crude benchmark, was up 12 cents at $49.37 a barrel early on Tuesday. It rose 2.3% on Monday to settle at $49.25 a barrel.

The US benchmark, West Texas Intermediate crude, increased 8 cents to $46.34, after gaining 1.6% in the previous session.

Russia, one of the world’s top three oil producers, said it was prepared to meet Opec and non-Opec oil producers to discuss the market if such a gathering is called.

A separate meeting between Russian and Saudi officials was being planned for the end of October, Russian Energy Minister Alexander Novak has said.

Brent crude fell 24% last quarter and is down 14% this year, following a 48% decline in 2014.

US crude is down 13% this year, after falling 46% last year. The contract also fell 24% in the last quarter.


  • Reuters
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