Expected Russia-Saudi Meeting Rises Oil Prices

Local Editor

Oil prices rose Tuesday with Brent breaking past $34 a barrel on expectations that energy heavyweights Russia and Saudi Arabia will discuss the global oversupply issue in a Doha meeting.

At around 06:00 GMT, European benchmark Brent crude for April delivery was trading $1.30, or 3.89 percent, higher at $34.69.

Its US counterpart West Texas Intermediate for March delivery was up $1.30, or 4.42 percent, at $30.74 compared to its Friday close. There was no settlement in the New York Mercantile Exchange Monday due to a US public holiday.

Relatively, Investment analyst at Phillip Futures in Singapore, Daniel Ang, said: "As representatives from major oil producers fly to Doha to meet, the bullish flames get fanned, causing prices to remain strong."

"As much as we continue to believe that this is yet another meeting that would yield nothing, the markets remain wary of any sudden agreement that major oil producers could come to."

Meanwhile, oil prices have been depressed since last peaking in mid-2014, due to oversupply, sluggish demand and slowing economies. They are currently down about 70 percent from June 2014 levels.

Adding to the pressure on prices is the resumption of Iranian oil exports this year after international sanctions linked to its nuclear program were eased by world powers.

Source: News Agencies, Edited by website team