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2/22/2016, 8:52 PM (Source: TeleTrader)
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Oil rally loses pace, as energy conference starts

Prices of crude oil rallied throughout the Monday, jumping as much as 8% for the short period, but lost the pace as the trade was officially closing in the United States.

The light sweet crude West Texas Intermediate for delivery in April traded up 4.68% at $33.31 a barrel at 8:50 p.m. CET at the ICE Europe, hours after reaching daily high of $33.84 a barrel. The international benchmark Brent also rose 4.70% at $34.65 a barrel after a 5-hour seesaw session, with daily high of $35.57 a barrel.

The Organization of the Petroleum Exporting Countries reported the OPEC daily basket price of 13 crudes at $29.17 a barrel on Friday, compared with $29.96 the previous day.

The rise was induced by the speculations that falling number of rigs in the U.S. would result in 600,000 barrels per day lower production by the end of the year, and another 200,000 barrels per day in 2017.

However, speculations around the deal within the Organization of the Petroleum Exporting Countries on the production freeze was put on hold in expectance of the speech of the OPEC Secretary General Abdalla Salem El-Badri at CERAWeek Energy Conference, opening in Houston, Texas on Monday.

Other speakers for the day, discussing the future of oil markets, include Fatih Birol, the executive director of the International Energy Agency, and Jeffrey Imelt, chairman and CEO of General Electric, and host of the conference, Daniel Yergin, vice chairman of IHS.

The U.S. dollar was weaker 0.92% to the euro, and 0.42% against the Canadian counterpart. It was strengthening 0.16% against the Japanese yen, and as much as 1.45% against the U.K. sterling at 8:51 p.m. CET.

Breaking the News / ZR