Crude prices remain stable, while OPEC + studies a cut in supply

Crude prices remain stable, while OPEC + studies a cut in supply

LONDON, Aug 25 – Oil prices stabilized on Thursday after producer group OPEC+ raised the possibility of limiting oil supply, while the prospect of a deal that could put oil exports back on the market Iranian oil limited progress.

* Brent crude was down 5 cents, or 0.05%, at $101.19 a barrel by 1055 GMT, while US West Texas Intermediate crude was down 22 cents, or 0.23%, at 94.68. dollars a barrel.

* Comments by Saudi Energy Minister Prince Abdulaziz bin Salman on Monday about the disconnect between futures and physical markets, in which he signaled the possibility of OPEC+ cutting output, have helped boost prices. oil to three-week high.

* “The suggestion that price was not in line with fundamentals and that OPEC+ might cut output has clearly had the desired effect,” said Craig Erlam, an analyst at Oanda.

* “It may also make it difficult to break back below $90 in the short term, unless a nuclear deal is reached and OPEC+’s appetite for cuts is tested,” he added.

* Talks between the European Union, the United States and Iran to revive the 2015 nuclear deal continue, with Tehran saying it had received a response from Washington to the “final” text from Brussels to revive the deal.

* Falling US crude and product stockpiles also added to upward pressure on prices. Oil inventories fell by 3.3 million barrels in the week ended Aug. 19 to 421.7 million barrels, beating analysts’ expectations in a Reuters poll for a drop of 933,000 barrels.

* The upside impact was offset by a smaller-than-expected draw in gasoline inventories, reflecting tepid demand.

* US gasoline stocks fell by 27,000 barrels in the week to 215.6 million barrels, versus previous expectations for a 1.5 million barrel drop.

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