August 19, 2018

Oil prices retreat as Saudi cools on producers deal

Oil prices retreat as Saudi cools on producers deal

Oil slid this week on waning prospects of an output freeze by producers to tackle a supply glut that shows no signs of ending as US crude inventories hit record heights.

After winning some support from a weaker dollar that made crude priced in the US unit cheaper for holders of rival currencies, oil prices slumped on Friday following comments out of Saudi Arabia.

“The suggestion that Saudi Arabia will not freeze oil production if Iran doesn’t do the same, coupled with a stronger dollar, has taken a sledge hammer” to prices, said Jasper Lawler, an analyst at traders CMC Markets.

Around 16:30 GMT, US benchmark West Texas Intermediate for delivery in May was down $1.41 at $36.93 a barrel compared with Thursday’s close. Brent North Sea crude for June delivery shed $1.57 to $38.76 a barrel. Both contracts were down also compared with one week earlier. Read more

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