Crude on Six-Week High as OPEC Mulls Supply Freeze
Analysts however are sceptical that a freeze in production at current levels would help shore up prices.
Brent crude hit a six-week high above US$50 a barrel today, as the world’s biggest producers are discussing a possible freeze in production levels. Brent rose to US$50.22 a barrel, up US$0.37 and the highest since July 4.
US Light crude oil was up US$0.65 to US$47.44.
Light, sweet crude for September delivery recently gained US$0.95 or around 2%, to US$47.74 a barrel.
Benchmark North Sea rose 20% from a low early this month on news OPEC and other key exporters like Russia are likely to revive talks on freezing output levels at a next month’s summit in Algeria.
The collapse in oil prices over the last two years has hit OPEC members quite badly. Some Gulf oil exporters have very low output costs, but other producers such as Iran and Venezuela need oil prices above US$100 in order to balance budgets.
Analysts however are sceptical that a freeze in production at current levels would help shore up prices.
Saudi Arabia, meanwhile, has signalled that it could boost its crude oil supplies in August to a new record.
