Oil drops again as Russia casts doubt on supply limits
North Sea Brent, for October delivery, fell $1.44 to settle at $45.45 per barrel
NEW YORK, Sept 1, 2016 (AFP) - Oil prices continued to fall on Thursday as investors reacted to rising US inventories and to Russian remarks that a production freeze may be unnecessary.
In New York, a barrel of West Texas Intermediate crude for October delivery finished down $1.54 at $43.16.
North Sea Brent, also for October delivery, fell $1.44 to settle at $45.45 per barrel on the Intercontinental Exchange in London.
Oil markets had rallied last month on hopes that producing countries will limit supply when they meet later this month in Algeria.
Russia, which is not a member of the Organization of the Petroleum Exporting Countries, had held out the possibility of joining the informal OPEC meeting in Algiers. But members such as Iran and Iraq show no signs of slowing output and Russia suggested Thursday it may not act either.
Energy Minister Alexander Novak was quoted as saying Thursday that talks on a production freeze would not be needed if prices stood around $50 per barrel, according to media reports citing the ministry s press service.
According to Bob Yawger of Mizuho Securities, Wednesday s US oil inventory report and Novak s remarks were weighing on investors.
US Energy Department figures released Wednesday showed that last week US commercial crude inventories rose 0.4 percent to 525.9 million barrels, a level nearly 16 percent over same point last year.
"The market has corrected accordingly this morning," Yawger told AFP, adding that currency fluctuations momentarily favoring the dollar had also not helped.
