Share

Oil pares gains as Saudi Arabia, Russia agree on output freeze

London - Oil pared gains as Russia and Saudi Arabia agreed to freeze oil output at January levels after talks in Qatar.

Brent crude was about 1.1% higher, having earlier climbed as much as 6.5%. Producers will keep output steady at January levels, Qatar Energy Minister Mohammad bin Saleh al-Sada told reporters in Doha on Tuesday, adding that low prices haven’t been positive for the global economy.
 
Saudi Arabia’s Ali al-Naimi agreed that keeping production steady would be adequate, while also saying that demand is rising and that the kingdom wanted to satisfy customers.

"A freeze would not create an immediate U-turn but it creates a better foundation for the price recovery in the second half," Olivier Jakob, managing director of oil consultants Petromatrix GmBh, said in a note to clients before the meeting concluded.  

Venezuela has lobbied exporters including Russia, Iran and Saudi Arabia to arrange a meeting between OPEC members and other suppliers in an attempt to reach an agreement to balance the market.

Oil is still down about 5% this year amid the outlook for increased Iranian exports. BP predicts the market will remain “tough and choppy” in the first half as it contends with a surplus of 1 million barrels a day.

Brent for April settlement traded 32 cents higher at $33.71 a barrel, after advancing as much as $2.16 to $35.55 a barrel on the ICE Futures Europe exchange. The European benchmark crude was at a premium of $1.66 to West Texas Intermediate for April.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.05
-0.7%
Rand - Pound
23.98
-0.3%
Rand - Euro
20.55
-0.4%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.7%
Platinum
894.10
-0.3%
Palladium
996.00
-0.6%
Gold
2,193.32
-0.1%
Silver
24.41
-1.0%
Brent Crude
86.09
-0.2%
Top 40
67,889
+0.3%
All Share
74,074
+0.2%
Resource 10
56,132
+0.9%
Industrial 25
103,554
+0.3%
Financial 15
16,492
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders