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Oil slumps 3 percent on report Saudis do not see output deal

By Barani Krishnan

NEW YORK (Reuters) - prices fell about 3 percent on Friday, paring weekly gains, on a report that did not expect an agreement at talks next week among major crude exporters aimed at freezing production.

Crude futures slumped after Bloomberg reported that did not expect a decision at Algiers, the capital of Algeria where the biggest producers are expected to convene next week for talks, traders said. Bloomberg cited a "delegate" as source, said traders who saw the report.

Brent crude was down $1.33, or 2.8 percent, at $46.32 a barrel by 11:56 a.m. EDT (1556 GMT). For the week, it was up 1.6 percent.

U.S. West Texas Intermediate (WTI) crude was down $1.40, or 2.9 percent, at $44.92. On the week, WTI showed a gain of less than 5 percent.

Earlier in the session, Brent and WTI were headed for their largest weekly gain in more than a month, reacting to a report that has offered to reduce production if rival Iran caps its own output this year. The report was based on sources who were familiar with discussions between the two sides.

Traders and investors were also awaiting a U.S. rig count report to ascertain if more drillers were returning to the well pad in the world's largest consumer. The weekly report by services firm Baker Hughes, due at 1:00 p.m. EDT (1700 GMT) had shown rig additions in twelve out of the last 13 weeks.

(Additional reporting by Sabina Zawadzki and Libby George in LONDON and Henning Gloystein; in SINGAPORE; Editing by Marguerita Choy and Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard

Oil slumps 3 percent on report Saudis do not see output deal

Reuters  |  NEW YORK 

By Barani Krishnan

NEW YORK (Reuters) - prices fell about 3 percent on Friday, paring weekly gains, on a report that did not expect an agreement at talks next week among major crude exporters aimed at freezing production.

Crude futures slumped after Bloomberg reported that did not expect a decision at Algiers, the capital of Algeria where the biggest producers are expected to convene next week for talks, traders said. Bloomberg cited a "delegate" as source, said traders who saw the report.

Brent crude was down $1.33, or 2.8 percent, at $46.32 a barrel by 11:56 a.m. EDT (1556 GMT). For the week, it was up 1.6 percent.

U.S. West Texas Intermediate (WTI) crude was down $1.40, or 2.9 percent, at $44.92. On the week, WTI showed a gain of less than 5 percent.

Earlier in the session, Brent and WTI were headed for their largest weekly gain in more than a month, reacting to a report that has offered to reduce production if rival Iran caps its own output this year. The report was based on sources who were familiar with discussions between the two sides.

Traders and investors were also awaiting a U.S. rig count report to ascertain if more drillers were returning to the well pad in the world's largest consumer. The weekly report by services firm Baker Hughes, due at 1:00 p.m. EDT (1700 GMT) had shown rig additions in twelve out of the last 13 weeks.

(Additional reporting by Sabina Zawadzki and Libby George in LONDON and Henning Gloystein; in SINGAPORE; Editing by Marguerita Choy and Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Oil slumps 3 percent on report Saudis do not see output deal

NEW YORK (Reuters) - Oil prices fell about 3 percent on Friday, paring weekly gains, on a report that Saudi Arabia did not expect an agreement at talks next week among major crude exporters aimed at freezing production.

By Barani Krishnan

NEW YORK (Reuters) - prices fell about 3 percent on Friday, paring weekly gains, on a report that did not expect an agreement at talks next week among major crude exporters aimed at freezing production.

Crude futures slumped after Bloomberg reported that did not expect a decision at Algiers, the capital of Algeria where the biggest producers are expected to convene next week for talks, traders said. Bloomberg cited a "delegate" as source, said traders who saw the report.

Brent crude was down $1.33, or 2.8 percent, at $46.32 a barrel by 11:56 a.m. EDT (1556 GMT). For the week, it was up 1.6 percent.

U.S. West Texas Intermediate (WTI) crude was down $1.40, or 2.9 percent, at $44.92. On the week, WTI showed a gain of less than 5 percent.

Earlier in the session, Brent and WTI were headed for their largest weekly gain in more than a month, reacting to a report that has offered to reduce production if rival Iran caps its own output this year. The report was based on sources who were familiar with discussions between the two sides.

Traders and investors were also awaiting a U.S. rig count report to ascertain if more drillers were returning to the well pad in the world's largest consumer. The weekly report by services firm Baker Hughes, due at 1:00 p.m. EDT (1700 GMT) had shown rig additions in twelve out of the last 13 weeks.

(Additional reporting by Sabina Zawadzki and Libby George in LONDON and Henning Gloystein; in SINGAPORE; Editing by Marguerita Choy and Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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