12 September 2016 at 2:37 GMT
The longer OPEC and other producers talk about a ceiling on crude output, the more doubts grow in the market, writes Mark Shenk. Money managers increased wagers on falling prices by the most in three months as a meeting between Russia and Saudi Arabia ended without specific measures to support prices. Producers have pledged to discuss action in Algiers later this month. “The more they talk, the less people listen,” said Michael D. Cohen, an analyst at Barclays in New York. “If you look at the Saudi statements, there’s not a lot of enthusiasm. They’re saying that either they don’t believe a substantial intervention is needed right now or that if other producers want a freeze they’ll go along.” Saudi Arabia’s Energy Minister Khalid Al-Falih has said he’s optimistic producers will agree to cooperate in Algiers. He spoke after meeting his Russian counterpart, Alexander Novak, at the G20 summit in China.
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