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LONDON: Oil prices stabilized on Tuesday, depressed by record Saudi output but buoyed by expectations that oil exporters would agree to cut production at an OPEC meeting next week.
Brent crude rose 10 cents a barrel to $ 60.58 a barrel by 2:45 pm, a level close to the 58-month record of $ 58.41. US light crude rose 10 cents to $ 51.73.
Oil prices have fallen by almost a third since the beginning of October, due to the emergence of a surplus supply and the general weakness of the financial markets.
Prices rose sharply on Monday, with Brent growing close to 2.9%, but the market is struggling to remain positive.
"The energy complex is tentatively trying to expand its earnings," said Stephen Brennock, an badyst at PVM Oil, a London brokerage firm.
"However, the upside potential is limited by two risky events, namely the G20 summit and the OPEC meeting next week.
"A wait-and-see approach is therefore likely to prevail, which in turn will act as a brake on any impending price fluctuations."
The leaders of the 20-nation (G20), the world's largest economy, will meet on November 30 and December 1 to discuss the trade war between Washington and Beijing. The three major crude oil producers – Russia, the United States and Saudi Arabia – all being present, oil policy should be the subject of discussion.
The OPEC meets in Vienna on December 6 to discuss production policy with non-OPEC producers, including Russia.
Fereidun Fesharaki, chairman of the energy consulting firm FGE, said that if OPEC and Russia did not significantly reduce the supply, crude prices would fall further, perhaps (with) Brent at $ 50 a barrel and $ 40 a barrel or less. "
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