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Oil prices rise as Venezuela sees output deal

The loading of the first oil cargo from Ras Lanuf was stopped due to the clashes in Libya, raising fears of new conflict over Libya's oil resources. Photograph: (Reuters)

WION Singapore Sep 19, 2016, 06.51 AM (IST)
Oil prices went up today by almost 2 per cent after Venezuela said OPEC and non-OPEC producers were close to reaching an output stabilising deal. 

Venezuelan President Nicolas Maduro said that a deal could be announced this month to stabilise oil markets which has been under pressure due to surplus and a price collapse over the past two years., international news agency Reuters reported. 

Brent crude futures were at $46.59 per barrel, up 82 Cents or 1.8 per cent at 0301 GMT. While US crude was up 88 cents or 2 per cent at $43.91 a barrel.

Ric Spooner, CMC Markets' chief market analyst said that the rise in oil prices is a reaction to Venezuelan comments about producers reaching a possible output agreement. 

"(Libya) unable to get their first ship loaded is a reminder that it may be difficult for Libya to increase production," he added. 

The loading of the first oil cargo from Ras Lanuf was stopped due to the clashes in Libya, raising fears of a new conflict over Libya's oil resources.

(WION with inputs from Reuters)


 
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