Oil price falls to $49 a barrel

LONDON — Oil fell below $49 a barrel yesterday, giving up part of August’s strong rally, as signs of rising supply outweighed hopes that producing nations will agree steps to support prices.

A Nigerian militant group, which has claimed a wave of attacks on oil facilities, said at the weekend it was ready for a ceasefire and Iraq resumed pumping through a northern pipeline halted earlier this year.

Brent crude was down 41 cents at $48,75 a barrel at 1103 GMT.

The global benchmark rallied 20 percent between the beginning of the month and August 19. US crude was down 37 cents at $47,04.

“Today we remain bearish on crude oil,” said Georgi Slavov, analyst at Marex Spectron.

“Supply looks likely to increase in the short term.”

Goldman Sachs, in a report, said talk of an output freeze by the Organisation of the Petroleum Exporting Countries and a weak dollar had helped drive prices up this month but neither was enough to sustain current levels.

Oil prices have more than halved from mid-2014 due to a global supply glut.

Raising hopes that producers could revive efforts to tackle excess supply, Saudi Arabia’s Energy Minister Khalid al-Falih said on August  11 OPEC and non-members will discuss the market next month including any action that may be needed.

The International Energy Forum, which groups producers and consumers, is due to meet on September 26-28 in Algiers.

A previous attempt by producers to freeze output collapsed in April on tensions between Iran and Saudi Arabia and the refusal of some countries to join.

Analysts remain skeptical concrete action will result this time. — Reuters.

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