Oil prices steadied on Thursday as traders digested the prospects over possible OPEC action amid record high Saudi Arabia’s output.
London – Crude futures were little changed on Thursday, with the mood affected by news over Saudi Arabia’s record high output amid speculation whether the OPEC will take steps in order to boost prices.
The market continues to speculate that the oil cartel was ready to reach an output freeze agreement with non-OPEC producers in order to boost weak oil prices, and as major producers continue to expand their production.
Saudi Arabia reported a new record high 10.67 million bpd for last month, while Iranian oil production is back to just shy of the pre-sanctions level of 4 million bpd.
Analysts are warning against of a price rally based on future talks among OPEC producers as the similar meetings earlier this year failed to bring any results, disappointing the oil market.
On the supply story, the Energy Information Administration said on Wednesday that US crude inventories fell by 2.5 million barrels last week, while analysts had forecast a build of about 400,000 barrels.
However, the US oil drilling rig count has risen without pause for seven weeks, signaling more production ahead. The fresh Baker Hughes’ rig count data are scheduled for Friday.