Oil prices edged up on Monday after the Saudi oil minister discussed possibly extending a pact to cut global oil supplies beyond March 2018 with his Venezuelan and Kazakh counterparts.
News of the talks on Sunday helped offset downward pressure on oil prices amid worries that energy demand would be hit hard by Hurricane Irma and its aftermath.
The hurricane knocked out power to nearly 4 million homes and businesses in Florida on Sunday. It is forecast to weaken to a tropical storm over northern Florida or southern Georgia later on Monday.
U.S. crude for October delivery was up 39 cents, or 0.8 percent, at $47.87 a barrel by 0409 GMT, having tumbled 3.3 percent on Friday.
London Brent crude for November delivery was up 22 cents, or 0.4 percent, at $54, having settled down 1.3 percent.
“The oil market reacted to the Saudi talks,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo. “The drop in U.S. oil refining is also to be offset by higher processing at other nations, so worries over a substantial cut in crude oil demand are fading.” Read More…