Oil rebounds on producer deal speculation; gasoline falls

Mon Sep 19, 2016 2:05pm EDT
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By Barani Krishnan

NEW YORK (Reuters) - Oil prices rose 1 percent on Monday after Venezuela hinted that OPEC members and other major oil producers could agree to a deal to freeze output, and as clashes in Libya disrupted attempts to restart crude exports from key ports.

U.S. gasoline futures fell on profit-taking from last week's rally on the outage of a key gasoline pipeline due to a leak.

Oil was also supported by higher equity prices on Wall Street and a weaker dollar that made greenback-denominated commodities, such as crude, more affordable to holders of the euro and other currencies. [.N] [FRX/]

Brent crude futures were up 40 cents at $46.17 a barrel by 1:24 p.m. EDT (1724 GMT), reaching as high as $46.93 earlier.

U.S. West Texas Intermediate (WTI) crude futures rose by 37 cents to $43.40, after a session high at $44.15.

U.S. gasoline futures fell 1.6 percent to $1.4390 per gallon.

Last week, Brent hit a two-week low of $45.48 a barrel and WTI fell to a five-week low of $42.74 on concerns about oversupply with more deliveries from Libya and Nigeria.

Clashes in Libya on Sunday, however, halted the loading of the first oil cargo from the port of Ras Lanuf.   Continued...

A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015.    REUTERS/Nick Oxford