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Oil futures rose in today's trading, reaching a six-week high, as the world's largest oil producers have signaled their readiness to discuss the possibility of freezing production levels.
Brent crude oil prices have risen by more than 20 percent since the beginning of the month in response to the news that members of OPEC and other key exporters are likely to resume talks on freezing production levels at the meeting in September.
Many OPEC members have been hit hard by the collapse in oil prices over the past two years. While some Gulf oil exporters have very low production costs, other producers, such as Iran and Venezuela, need oil prices above $ 100 to balance their budgets. However, analysts believe that the freezing of production at current levels would not be able to support prices. Meanwhile, Saudi Arabia has made it clear that, in August, can increase oil deliveries to a new record level, although it has expressed willingness to discuss production levels with other manufacturers.
In view of this situation, Citi analysts have warned that there are risks to the price rally, based primarily on the potential for future negotiations on freezing oil production levels, given that similar meetings earlier this year ended without result.
The cost of October futures for US light crude oil WTI (Light Sweet Crude Oil) rose to 48.60 dollars per barrel.
October futures price for North Sea petroleum mix of Brent crude rose to 50.87 dollars a barrel on the London Stock Exchange ICE Futures Europe.
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