- Saudis say producers may discuss possible action: Reuters
- Record demand from refiners to erode bloated stockpiles: IEA
Oil is heading for its biggest weekly advance since April amid speculation informal OPEC talks next month may lead to stabilization measures after prices tumbled into a bear market.
Oil has fluctuated after falling more than 20 percent into a bear market and closing below $40 a barrel last week for the first time in almost four months. Refiners around the world will process record volumes of crude this quarter as their intake rebounds, shrinking brimming crude supplies, the IEA said in its monthly report on Thursday.
West Texas Intermediate for September delivery rose as much as 28 cents to $43.77 a barrel on the New York Mercantile Exchange and was at $43.70 at 8:50 a.m. Hong Kong time. The contract gained $1.78 to $43.49 on Thursday, rebounding after a 3.1 percent drop during the previous two sessions. Total volume traded was about 23 percent below the 100-day average. Prices are up 4.5 percent this week.
Brent for October settlement increased as much as 20 cents, or 0.4 percent, to $46.24 a barrel. Prices rose $1.99, or 4.5 percent, to $46.04 a barrel on Thursday. The global benchmark crude traded at a premium of $1.74 to WTI for October.