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Oil prices dip as Saudi Arabia dampens output freeze expectations

An offshore oil platform is seen at the Bouri Oil Field off the coast of Libya. Photograph: (Reuters)

WION Singapore Aug 26, 2016, 04.55 AM (IST)
Oil prices dipped on Friday morning after Saudi's energy minister lowered expectations of strong market intervention by producers in next month's talks.

International benchmark Brent crude oil prices were trading at $49.55 per barrel at 0114 GMT, 12 cents below their previous close.

US West Texas Intermediate (WTI) crude was seven cents below at $47.26 a barrel.

Saudi Arabian Energy Minister Khalid Al-Falih told Reuters late on Thursday that "we don't believe any significant intervention in the market is necessary other than to allow the forces of supply and demand to do the work for us," adding that the "market is moving in the right direction" already.

Members of the Organization of Petroleum Exporting Countries (OPEC) will meet at the International Energy Forum (IEF), with producers and consumers, in Algeria in the last week of September.

The minister's comments dampened expectations of a significant intervention into the market which has been marked by oversupply for more than two years.

(WION with inputs from agencies)
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