SEOUL: Oil prices rose early on Monday ahead of a meeting between Opec and US shale firms in Houston, raising expectations that oil producers would discuss further how to clear a global oil glut. International benchmark Brent crude was up 44 cents, or 0.68 per cent, at $64.81 a barrel by 0135 GMT.
US West Texas Intermediate (WTI) crude rose 41 cents, or 0.67 per cent, to $61.66 per barrel.
Oil ministers from the Organization of the Petroleum Exporting Countries (Opec) and other global oil players are set to gather in Houston as CERAWeek, the largest energy industry conference, begins on Monday.
Opec Secretary-General Mohammad Barkindo and other Opec officials are expected to hold a dinner on Monday with US shale firms on the sidelines of the conference.
“Opec and non-Opec alliance remain at record high compliance, but with Russia continually pressuring for an exit strategy, Opec will look to offer an olive branch to US shale,” said Stephen Innes, head of trading for the Asia-Pacific region at futures brokerage OANDA in Singapore.
“As such, we should interpret any positive developments from the meeting as support for underlying oil price sentiment.”
Rising US shale oil production has been a drag on the Opec’s commitment to erode a prolonged global oil glut and prop up prices.
— Reuters
Oman Observer is now on the WhatsApp channel. Click here
