Crude oil prices rose on Tuesday, boosted by expectations that demand could grow quickly enough to match supply this year, although concern over a potential battle for market share between Saudi Arabia and Iran limited gains. Front-month Brent crude futures were up by 74 cents at $45.22 a barrel by 1340 GMT (8:40 a.m. ET). U.S. crude futures rose 76 cents to $43.40 a barrel.
President Obama is landing in Saudi Arabia to try to smooth over sour relations with America’s long-term ally, Saudi Arabia. While the crude oil market is selling off overnight on renewed concerns about China’s economy and the ending of the Kuwaiti oil strike, this meeting today may have more of a long term impact on the future of oil prices then some of these short term factors.
Saudi Arabia backed out of a deal to freeze crude oil output at the “Doha Initiative” in a sign that the politics of OPEC have changed forever. There seems to be a widened slip from the old energy guard led by Saudi oil minister Ali al-Naimi and the factions led by the new Saudi King Salman.
World stocks rose to their highest level in more than four months on Thursday and the dollar chalked up a third day of gains as markets took a positive view ahead of top policymaker and oil producer meetings.