Volatility in oil market to remain in near future, says Aramco CEO

Amin Nasser, CEO of Saudi Aramco, said market has proven that companies with strong downstream operations are in a better position
Amin Nasser, CEO of Saudi Aramco.
By Reuters
Mon 26 Sep 2016 11:23 AM

Although the oil market has recovered it is still weak and will remain volatile in the near future, Amin Nasser, CEO of Saudi Aramco, told a conference in Dubai on Monday.

The market has proven that companies with strong downstream operations are in a better position, he added.

Meanwhile, crude prices rebounded on Monday after Algeria's energy minister said the day before that all options were possible for an oil output cut or freeze at this week's informal meeting of Opec producers.

That came after prices tumbled 4 per cent on Friday amid signs Saudi Arabia and Iran were making little progress in achieving preliminary agreement to freeze production.

Members of the Organisation of the Petroleum Exporting Countries will meet on the sidelines of the International Energy Forum in Algeria from September 26-28, where they will discuss a possible output-limiting deal.

"We will not come out of the meeting empty-handed," Algerian energy minister Noureddine Bouterfa said in Algiers on Sunday.

US West Texas Intermediate (WTI) crude futures had climbed 42 cents to $44.90 a barrel as of 0914 GMT after falling $1.84, or 4 per cent, in the previous session. US crude gained 3 per cent last week.

Brent crude futures advanced 42 cents to $46.31 after settling down $1.76, or 3.7 per cent, at the previous close. The benchmark rose 0.3 per cent last week.

"The fact countries like Algeria are still talking about a deal means it's still on the table regardless of others' views about what might be happening," said Jonathan Barratt, chief investment officer at Sydney's Ayers Alliance.

"I expect Algeria and Venezuela to keep pushing for a deal - it's imperative for them to keep the price up," Barratt said.

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