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Crude edges down on oil glut worries

Published 05/09/2016, 09:07 am
Updated 05/09/2016, 09:10 am
© Reuters.  Crude edges down on oil glut worries
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TOKYO, Sept 5 (Reuters) - Crude prices inched down on Monday in Asia, paring 3 percent gains in the previous session amid worries over a global oil glut.

London Brent crude for November delivery LCOc1 was down 18 cents at $46.65 a barrel by 2245 GMT on Sunday.

The global benchmark settled up $1.38 on Friday after a weak U.S. jobs report hurt the dollar. It was also helped by a report that Russian President Vladimir Putin supports OPEC's attempts to implement an output freeze with other producers. crude for October delivery CLc1 was down 18 cents at $44.26 a barrel, after closing up $1.28 on Friday. The trading in U.S. crude is likely to be limited on Monday because of the U.S. Labor Day holiday.

Brent rallied to above $50 a barrel by late August helped by growing talk of a coordinated production freeze, but the prices have since fallen as few believe OPEC will cut output.

Cooperation between Russia and Saudi Arabia will bring benefits to the global oil market, Saudi Arabia's powerful deputy crown prince Mohammed bin Salman told Putin on Sunday. and Saudi Arabia, the world's leading oil producers, are seeking ways to prop up a weak oil market.

Iran is ready to support any decision to help restore balance to the oil market after it regains its pre-sanctions market share, the Iranian Oil Ministry's SHANA news agency reported on Saturday, quoting a minister. OPEC's third largest producer, has been sending positive signals that it may support joint action to prop up the oil market, potentially aiding efforts to revive a global deal on freezing production levels. Energy Minister Alexander Novak said on Saturday that an oil production freeze would be one of the issues discussed by crude producers at their meeting later this month in Algiers. 150,000 barrels-per-day Aden oil refinery resumed operations on Sunday after being shut for more than a year as the conflict in the country worsened, an industry official at the refinery said. managers cut their net long U.S. crude futures and options positions in the week to Aug. 30, the first time in nearly a month, data from the U.S. Commodity Futures Trading Commission showed on Friday.

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