Oil spikes on reports OPEC may hold formal meeting

Oil spiked in Asia on reports OPEC may convene an extraordinary meeting if the major producers agree to freeze output at Algeria meeting later this month.

At the time of writing, Brent oil was up 1.79% or 0.82 cents at $46.59/barrel. WTI oil was up 1.9% or 0.83 cents at 44.45/barrel.

Oil benchmarks suffered 2% price drop on Friday after Baker Hughes data showed US oil rig count rose for the 11th out of the last 12 weeks. Furthermore, it was reported that Iran and OPEC kingpin Saudi Arabia have been raising exports despite the approaching September 26-28 meeting in Algeria.

Freeze is unlikely

According to Algeria’s official news agency, Secretary General Mohammed Barkindo said he is “optimistic” about the informal session in Algiers to be held Sept. 27. However, he added “it is meeting of consultation and not of decision-making”.