Crude up slightly in early Asian trade, Russia mulls oil talks

By: | Published: October 6, 2015 7:34 AM

Brent crude, the global crude benchmark, was up 12 cents at $49.37 a barrel at 0057 GMT. It rose 2.3 percent on Monday to settle at $49.25 a barrel.

oil pricesCrude oil prices rose in early Asia trade, adding to gains in the previous session, after Russia signaled it was willing to meet with other big oil producers to discuss the market following the decline in prices in the last quarter.(Reuters)

Crude oil prices rose in early Asia trade, adding to gains in the previous session, after Russia signaled it was willing to meet with other big oil producers to discuss the market following the decline in prices in the last quarter.

But gains were limited with investors awaiting US government data on crude inventories this week. Some analysts are predicting the data will show further builds in crude stocks, putting oil prices under renewed pressure.

A Reuters poll on Monday indicates US crude stockpiles were up last week for a second straight week, gaining 1.8 million barrels on average in the week to Oct. 2.

The US Energy Information Administration, which reports official storage data on Wednesday, said last week that inventories were up about 4 million barrels in the week to Sept. 25.

Brent crude, the global crude benchmark, was up 12 cents at $49.37 a barrel at 0057 GMT. It rose 2.3 percent on Monday to settle at $49.25 a barrel.

The US benchmark, West Texas Intermediate crude, increased 8 cents to $46.34, after gaining 1.6 percent in the previous session.

Russia, one of the world’s top three oil producers, said it was prepared to meet OPEC and non-OPEC oil producers to discuss the market if such a gathering is called.

A separate meeting between Russian and Saudi officials was being planned for the end of October, Russian Energy Minister Alexander Novak has said.

Brent crude fell 24 percent last quarter and is down 14 percent this year, following a 48-percent decline in 2014.
US crude is down 13 percent this year, after falling 46 percent last year. The contract also fell 24 percent in the last quarter.
Gold went to a one-week high of $1,142 per ounce on Monday and last stood at $1,136.10.

The dollar had a mixed performance against major currencies as the headwind from fading expectations on the Fed’s rate hike was countered by positive risk sentiment.

The dollar traded at 120.48 yen and the euro traded at $1.1188, with both yen and euro sitting comfortably in their respective narrow trading ranges of the past few weeks.

The Australian dollar stood little changed at $.07083 after scaling a two-week high of $0.7112 on Monday, ahead of monthly policy meeting by the Reserve Bank of Australia (RBA) on Tuesday.

While the RBA is widely expected to keep rates at a record low of 2 percent, but the market will be scrutinising the  policy statement for clues on the central bank’s next move.

The BOJ also starts its two-day policy meeting on Tuesday.

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