Oil price nervous ahead of Opec mid-March meeting

 
Billy Bambrough
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Oil Prices Hit Historic High On Weak Dollar
The oil price has been held down by a supply glut, though Saudi Arabia is trying to broker a production freeze (Source: Getty)

The oil price is set for another rocky week as tensions build ahead of a second round of historic talks to cap output levels.

The Saudi Arabia led Organization of the Petroleum Exporting Countries (Opec) has been negotiating a deal with non-Opec Russia to freeze oil production at January levels and will meet again in mid-March.

Opec members Qatar and Venezuela have both signed up to the agreement which is dependant on cooperation from other oil producers. Saudi has promised more Opec and non-Opec countries will attend the second meeting.

Iran has poured scorn on the deal, vowing to raise its production to regain market share. Iraq is also intent on increasing its output.

On Friday, the oil price rose on the news pipeline issues in Iraq and Nigeria will strip over 800,000 barrels of oil per day from global supply for at least two weeks.

The price fell by the close however as investors cashed out profits. Brent crude finished down 16 cents at $35.13, after peaking during the day at over $37. US crude ended down 29 cents at $32.84 a barrel.

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