Oil steadies as Saudi Arabia to meet with Russia in Doha

London: Crude oil traded near $46 a barrel as Saudi Arabia and some other Opec nations meet with Russia for informal talks without oil ministers from Iran and Iraq, the two countries that pose the biggest hurdle to an output deal.
Futures advanced 0.5 per cent in New York after dropping 0.5 per cent on Wednesday. US crude stockpiles climbed for a third week, the longest run of gains since August, according to a government report. Russia will hold discussions with representatives from the Organisation of Petroleum Exporting Countries in Doha from Thursday, Energy Minister Alexander Novak said. There is a high chance of an agreement and Russia is ready to support a decision, he said.
Crude has retreated since reaching a 2016 high last month near $52 a barrel amid skepticism about the ability of Opec to implement a deal at its November 30 meeting in Vienna. The group is seeking to trim output for the first time in eight years, a plan complicated by Iran’s commitment to boost production and Iraq’s request for an exemption to help fund its war with Islamic militants. Opec will likely complete an accord that doesn’t include individual supply targets for members, according to a Bloomberg survey.
“I think they will cut,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “They have to. Otherwise we will see $40.”
West Texas Intermediate for December delivery was at $45.79 a barrel on the New York Mercantile Exchange, 22 cents higher, at 9:33 a.m. in London. The contract lost 24 cents to $45.57 on Wednesday. Total volume traded was about 3 per cent above the 100-day average.
Doha talks
Brent for January settlement was 22 cents higher at $46.85 a barrel on the London-based ICE Futures Europe exchange. The contract fell 32 cents to $46.63 on Wednesday. The global benchmark traded at a premium of 49 cents to January WTI.
Neither Iran nor Iraq will send their ministers to Doha. Hamed Al-Zobaie, Iraq’s deputy minister for natural gas affairs, will represent the country, according to a spokesman from the oil ministry. Iran will send OPEC Governor Hossein Kazempour Ardebili and the country’s national representative at Opec, Behrooz Baikalizadeh, an official said.