Oil re-enters bull market as it shrugs off rising Saudi exports

Jessica Morris
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Analysts are sceptical of a global oil freeze deal (Source: Getty)

Oil thundered back into bull market territory today, despite rising exports from de facto Opec leader Saudi Arabia.

Brent crude, the global benchmark, swelled 0.92 per cent to $50.31 per barrel on London's ICE Futures Exchange this afternoon. Its US counterpart, West Texas Intermediate crude, rose 1.75 per cent to $47.61.

Both benchmarks are now up more than 20 per cent from their lows in early August.

Read more: Opec warns of "lingering concerns" over US and European oil demand

It came despite the release of official data showing Saudi crude exports in June rose to 7.46m barrels per day from 7.3m a month earlier. It also revealed Saudi exported a large chuck of the oil it produced, rather than using it domestically.

But Carsten Fritsch, senior oil and commodities analyst at Commerzbank, warned: "The latest news from Saudi Arabia is not price supportive at all."

The black stuff has been gaining ground since it first emerged that some of the world's biggest producers were considering freezing their oil output to accelerate the embattled market's recovery.

Renewed speculation has so far failed to convince market analysts who remain jaded by meetings earlier this year which failed to produce any coordinated action.

Read more: Why oil prices are pushing higher

"We remain sceptical that renewed talks of a production freeze by Opec and other large producers will lead to a deal. Prices are only marginally above where they were when the group met in Doha in April and couldn't agree to a deal," ANZ analysts said in a note.

Opec are due to meet on the sidelines of an energy conference in Algeria next month.

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