Oil rises on report of Saudi proposal to balance market next year


Oil prices rose from near-2015 lows on Thursday after a report sourced to a senior OPEC delegate said Saudi Arabia would propose a deal to balance oil markets with non-OPEC help next year.

Benchmark Brent crude futures were up 59 cents at $43.08 a barrel at 0918 GMT. U.S. crude was trading 41 cents higher at $40.35 a barrel after sinking below $40 on Wednesday.

Saudi Arabia, which has so far resisted any market intervention to prop up oil prices, will propose the Organization of the Petroleum Exporting Countries (OPEC) cut output by 1 million barrels per day (bpd) next year, Energy Intelligence reported.

An OPEC production cut would only go ahead if non-members like Russia, Mexico, Oman and Kazakhstan commit to joint action, the senior delegate was cited as saying. OPEC ministers are gathering in Vienna for their Friday meeting.



Please enter your comment!
Please enter your name here