Oil prices have risen after the Organization of Petroleum Exporting Countries’ (OPEC) president reported the group will hold informal talks during the International Energy Forum in Algeria next month and predicted the current bear market would soon end.
Futures increased up to 1.9 percent in New York, the highest price in the past 12 days. OPEC is in talks of stabilizing the market, and oil prices are expected to rise in late 2016, according to an OPEC statement.
U.S. drilling continues to expand as crude inventories rise, which is keeping stockpiles more than 100 million barrels above the five-year average. According to two delegates from OPEC, there are no plans to renew the failed push for a production freeze during their talks in Algeria.
“If the market is rebalanced next year, you don’t need a freeze,” said Giovanni Staunovo, an analyst at UBS Group AG, according to Bloomberg.
According to Baker Hughes Inc., the U.S. rig count is the highest since March. Crude stockpiles have increased for a second week to 522.5 million barrels through July 29, keeping supplies close to April’s record of 543, the highest in at least 20 years.