Analysts say chances of a deal to cap output have receded
Oil prices have lost their early gains, hindered by renewed strength in the US dollar.
Brent had climbed as high as $46.48 a barrel in the wake of the continuing Canadian wildfire in the country’s oil sands region, which has hit more than a million barrels of daily production.
[The Canadian wildfire] is obviously a temporary factor so it won’t have a long-lasting impact on prices. Both contracts eased off their highs by midday in London.
[The departure of] Saudi’s Ali al-Naimi as head of the country’s oil ministry may be a reason why oil prices have failed to maintain their early advance. Al-Naimi’s successor, Khalid al-Falih, the former head of the state-owned Aramco, is largely expected to follow the strategy of protecting the nation’s market share. This has further reduced the likelihood of an oil-freeze deal with other large non-OPEC producers like Russia.