Oil rises on chance of output cuts as producers to meet

11:20, 16 February 2016
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Oil prices surged to their highest levels in more than a week as news of a meeting of top officials from the world's biggest oil producers spurred speculation of an eventual deal to tackle a deep supply glut, according to Reuters.


U.S. crude CLc1 was up $1.30 at $30.74 by 06:00 GMT. The contract rose by as much as $1.50, or 5.1%, to $30.94, the highest since February 8, building on Friday's more than 12% surge, Reuters wrote.

Brent crude for April delivery LCOc1 was up $1.36 at $34.75 a barrel. It rose as far as $34.80, the highest level since February 5, on top of 11-percent gains over the past two days.

Top oil officials from Saudi Arabia, Russia and several key OPEC members will meet on Tuesday for their highest-level discussion in months, a potentially pivotal sign that producers are at last preparing to tackle a devastating supply glut.

Read alsoBloomberg: Saudi, Russian oil ministers plan talks in Doha TuesdayThe talks in the Qatari capital Doha, which had been kept under wraps until recent days, involve powerful Saudi Oil Minister Ali al-Naimi and his Russian counterpart Alexander Novak, sources said, two figures who must reach an accord for any coordinated global action to hold any hope of success.

They will be joined by Venezuela's Oil Minister Eulogio Del Pino, who has in recent weeks been visiting major oil producers to rally support for the idea of "freezing" production at current levels in an effort to halt a downward spiral in prices, sources have said.

Read alsoOil prices jump but oversupply still damps outlook - ReutersBut analysts remain cautious on whether the meeting will result in an agreement.

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