Crude rises, though market faces long wait for next OPEC move
On Wednesday, crude futures inched up during early Asia trade, as market players shifted their focus to November, the time when key crude producers could decide on a more definitive plan to drop output, which has suppressed prices for two years.
On the New York Mercantile Exchange, November delivery light, sweet crude futures traded at $44.75 per barrel, ascending $0.08 during the Globex electronic trading session. On London’s ICE Futures, November delivery Brent crude futures added $0.22, hitting $46.19 a barrel.
Crude prices headed south overnight after Saudi Arabia, the number one producer in the Organization of the Petroleum Exporting Countries and also the one with the largest spare capacity, told it sees no chance for the cartel to agree on an output cap at a gathering later on Wednesday in Algiers.
Additionally, the kingdom’s oil minister Khalid al-Falih stressed that the long-awaited Algiers] meeting won’t change the fundamental of the energy market, as it’s still oversupplied and what’s really changing is the attitude of the crude producers and that’s what the energy market cares about the most.