News Daily Spot: Oil rose in New York on speculation that Iran will join to stabilize the market

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Oil rose in New York on speculation that Iran will join to stabilize the market

A pumping unit view Cisco, Texas. REUTERS

Oil went up Tuesday encouraged by the possibility that Iran will join the negotiations between major producers to reduce the oversupply of crude.


A barrel of WTI for October delivery rose 69 cents to $ 48.10 in New York on the first day of use as a reference.

In London, Brent for October delivery gained 80 cents to $ 49.96.

After its sharp drop on Monday, crude opened in red but was oriented upward when it was reported that Iran considers join discussions OPEC to stabilize the market, said Gene McGillian of Tradition Energy.

A couple of weeks ago the announcement of a meeting of OPEC in late September in Algiers, helped tone black gold prices.

That momentum was consolidated when Russia also showed willingness to participate in the meeting although not part of the cartel.

In the spring the failure of a meeting convened to freeze the offer was especially attributed to Iran. That country refused to take that path because at that time wanted to return to the market after it were lifted international economic sanctions.

Now, according to news agency Reuters, Iran is in a more conciliatory attitude because their production and is becoming similar to that of before being sanctioned for its nuclear program.

"Need to know if that will be implemented," McGillian said. "There are many questions about what can come out of that meeting" of oil-producing countries in Algiers, he added.

"If it finally not announce anything, prices could fall back towards $ 40," he said.

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