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Business

Saudi oil hints roil crude market

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Opening sequence

Business

Saudi oil hints roil crude market

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COMING UP:Saudi oil hints roil crude market

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00:00:00
>> Might Saudi Arabia be having a change of heart in oil strategy? Crude prices holding steady on Friday after a big jump the day before. That move came after the Saudi oil minister said he was willing to help rebalance the market. Traders took that as a hint that the Kingdom might ditch its policy of flooding the market with cheap oil in order to grab market share.
00:00:24
But Reuters commodities and energy columnist John Kemp says markets will probably just court on the hop.>> The market had become extremely bearish about the outlook for oil prices. Hedge funds had established a record short position in US benchmark crude prices over the last nine weeks, expecting them to continue declining.
00:00:43
That left the market very vulnerable to any piece of bullish good news, and this was a piece of bullish good news.>> US crude prices dropping back a little from $44 a barrel on Thursday All eyes now on September's meeting of major oil producers and consumers in Algeria.
00:01:01
Members of the OPEC cartel expected to hold talks on the sidelines, but US producers of shale oil could torpedo any agreement they might reach.>> The problem is that even if OPEC reached an agreement among its own members, there's no way to involve US shale producers in that.
00:01:17
So if OPEC decided to cut production, or even to simply implement a production freeze, I think shale producers wouldn't be bound by that. And clearly, shale producers might well step in to fill the gap.>> Iran also putting downward pressure on prices. It's busy raising oil output now that international sanctions have been lifted.
00:01:38
After a day of bullish sentiment on crude, it seems the bears could be taking charge again.