Oil prices see-saw, settle down on Russian pipeline constraints, recession fear | Reuters
Oil prices settled slightly lower on Tuesday after a see-saw session as worries that a slowing economy could cut demand vied with news that some oil exports had been suspended on the Russia-to-Europe Druzhba pipeline that transits Ukraine.
Crude prices have been under pressure for weeks as fears mounted that a recession could cut oil demand.
Brent crude settled at $96.31 a barrel, losing 34 cents, or 0.4%. U.S. West Texas Intermediate (WTI) crude settledat $90.50 a barrel, shedding 26 cents, or 0.3%. During the session, both benchmarks rose and fell by more than $1 a barrel.
Ukraine halted oil flows on the Druzhba oil pipeline to parts of central Europe because Western sanctions had prevented a payment from Moscow for transit fees from going through.
Flows along the southern route of the Druzhba pipeline have been affected while the northern route serving Poland and Germany was uninterrupted.
Oil initially moved higher on the pipeline news and expectations that the shutdown would tighten supplies, but prices reversed course as details became clearer around the cause of the disruption. read more
Tuesday, 9 August 2022
Exclusive: Heathrow owner Ferrovial studies options for stake in Britain's biggest airport | Reuters
Exclusive: Heathrow owner Ferrovial studies options for stake in Britain's biggest airport | Reuters
Spain's Ferrovial is looking at options for its 25% stake in London's Heathrow, two sources told Reuters, and has held preliminary talks with external advisers on the future of its holding in Britain's biggest airport.
The early stage discussions come amid interest in Ferrovial's stake from private equity firm Ardian, which has held talks with its own advisers on a possible joint proposal with Saudi Arabia's Public Investment Fund (PIF), these sources and another person familiar with the matter said.
Ferrovial (FER.MC) has yet to take a final decision and the discussions may not result in a sale, all the sources said.
Shares in the Madrid-listed firm rose as much as 4.2% on the Reuters report. At market close they were up 3.7%, scoring their second best day in five months and making them the third best performing stock across the pan-European STOXX 600 index.
Ferrovial and Ardian both declined to comment while PIF did not immediately respond to a request for comment.
Spain's Ferrovial is looking at options for its 25% stake in London's Heathrow, two sources told Reuters, and has held preliminary talks with external advisers on the future of its holding in Britain's biggest airport.
The early stage discussions come amid interest in Ferrovial's stake from private equity firm Ardian, which has held talks with its own advisers on a possible joint proposal with Saudi Arabia's Public Investment Fund (PIF), these sources and another person familiar with the matter said.
Ferrovial (FER.MC) has yet to take a final decision and the discussions may not result in a sale, all the sources said.
Shares in the Madrid-listed firm rose as much as 4.2% on the Reuters report. At market close they were up 3.7%, scoring their second best day in five months and making them the third best performing stock across the pan-European STOXX 600 index.
Ferrovial and Ardian both declined to comment while PIF did not immediately respond to a request for comment.
Oil prices bounce around on Russian pipeline constraints, recession fears | Reuters
Oil prices bounce around on Russian pipeline constraints, recession fears | Reuters
Oil prices see-sawed on Tuesday, as worries that a slowing economy could cut demand vied with news that some oil exports had been suspended on the Russia-to-Europe Druzhba pipeline that transits Ukraine.
Crude prices have been under pressure for weeks as fears mounted that a recession could cut oil demand.
Brent crude lost 77 cents, or 0.8%, to $95.88 a barrel at 1:01 p.m. EDT (1701 EDT). U.S. West Texas Intermediate (WTI) crude fell 88 cents, or 1%, to $89.88 a barrel. Earlier in the session, both benchmarks rose by more than $1 a barrel.
Russian pipeline monopoly Transneft said Ukraine had suspended oil flows via the pipeline because Western sanctions had prevented a payment from Moscow for transit fees from going through. That boosted prices earlier in the session. read more
Oil prices see-sawed on Tuesday, as worries that a slowing economy could cut demand vied with news that some oil exports had been suspended on the Russia-to-Europe Druzhba pipeline that transits Ukraine.
Crude prices have been under pressure for weeks as fears mounted that a recession could cut oil demand.
Brent crude lost 77 cents, or 0.8%, to $95.88 a barrel at 1:01 p.m. EDT (1701 EDT). U.S. West Texas Intermediate (WTI) crude fell 88 cents, or 1%, to $89.88 a barrel. Earlier in the session, both benchmarks rose by more than $1 a barrel.
Russian pipeline monopoly Transneft said Ukraine had suspended oil flows via the pipeline because Western sanctions had prevented a payment from Moscow for transit fees from going through. That boosted prices earlier in the session. read more
#Dubai's biggest bank gives staff a pay rise for inflation - sources | Reuters
Dubai's biggest bank gives staff a pay rise for inflation - sources | Reuters
Dubai's biggest bank Emirates NBD (ENBD.DU) has given most employees a pay rise of up to 8% to help cushion against rising costs of living driven by inflation, two sources familiar with the matter said.
The increases varied according to seniority and were part of a mid-cycle salary adjustment for inflation, with top executives receiving smaller or no increases, the sources said.
Most employees received a pay rise of between 5% and 8%, with lower-paid staff receiving the biggest increase, one of the sources, who has direct knowledge of the matter, said.
Emirates NBD, majority owned by Dubai's government, said it did not comment on staff-related matters.
Dubai's biggest bank Emirates NBD (ENBD.DU) has given most employees a pay rise of up to 8% to help cushion against rising costs of living driven by inflation, two sources familiar with the matter said.
The increases varied according to seniority and were part of a mid-cycle salary adjustment for inflation, with top executives receiving smaller or no increases, the sources said.
Most employees received a pay rise of between 5% and 8%, with lower-paid staff receiving the biggest increase, one of the sources, who has direct knowledge of the matter, said.
Emirates NBD, majority owned by Dubai's government, said it did not comment on staff-related matters.
Gulf markets end mixed ahead of U.S. inflation data | Reuters
Gulf markets end mixed ahead of U.S. inflation data | Reuters
Stock markets in the Gulf ended mixed on Tuesday ahead of U.S. inflation data that will likely yield clues to any further aggressive Federal Reserve rate hikes.
Dubai's main share index (.DFMGI) advanced 1.1%, with blue-chip developer Emaar Properties (EMAR.DU) rising 2.4% and sharia-compliant lender Dubai Islamic Bank (DISB.DU) finishing 1.4% higher.
The Dubai bourse rose strongly after data showed that economic activity is improving, particularly in non-oil sectors, said Daniel Takieddine, CEO Mena BDSwiss.
"At the same time, good earnings results could support the market in its uptrend."
According to a media report, the emirate's road-toll operator Salik to seek about $1 billion in initial public offering.
Salik is one of the 10 government-linked companies that were announced for listing as part of plans to boost stock market activity.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, driven by a 1.1% rise in Company for Cooperative Insurance (8010.SE) and a 1% increase in Arriyadh Development (4150.SE).
On the other hand, petrochemical maker Saudi Basic Industries Corp (SABIC) (2010.SE) gave up early gains to close flat.
SABIC reported a net profit of 7.93 billion riyals ($2.11 billion) for the three months to June 30, up from 7.64 billion riyals a year earlier, the company said in a bourse statement. read more
In Abu Dhabi, equities (.FTFADGI) added 0.2% in a choppy trade, helped by a 0.9% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
ADNOC Drilling Company (ADNOCDRILL.AD) climbed 2% after reporting a rise in second-quarter profit.
The Qatari benchmark (.QSI) fell 0.3%, hit by a 1.9% fall in Qatar International Islamic Bank (QIIB.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.8%, weighed down by a 1.3% fall in top lender Commercial International Bank Egypt (COMI.CA).
However, Beltone Financial Holding (BTFH.CA), which is not part of the index, surged 13% after Abu Dhabi investment firm Chimera Investment acquired a controlling stake in the firm.
Stock markets in the Gulf ended mixed on Tuesday ahead of U.S. inflation data that will likely yield clues to any further aggressive Federal Reserve rate hikes.
Dubai's main share index (.DFMGI) advanced 1.1%, with blue-chip developer Emaar Properties (EMAR.DU) rising 2.4% and sharia-compliant lender Dubai Islamic Bank (DISB.DU) finishing 1.4% higher.
The Dubai bourse rose strongly after data showed that economic activity is improving, particularly in non-oil sectors, said Daniel Takieddine, CEO Mena BDSwiss.
"At the same time, good earnings results could support the market in its uptrend."
According to a media report, the emirate's road-toll operator Salik to seek about $1 billion in initial public offering.
Salik is one of the 10 government-linked companies that were announced for listing as part of plans to boost stock market activity.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, driven by a 1.1% rise in Company for Cooperative Insurance (8010.SE) and a 1% increase in Arriyadh Development (4150.SE).
On the other hand, petrochemical maker Saudi Basic Industries Corp (SABIC) (2010.SE) gave up early gains to close flat.
SABIC reported a net profit of 7.93 billion riyals ($2.11 billion) for the three months to June 30, up from 7.64 billion riyals a year earlier, the company said in a bourse statement. read more
In Abu Dhabi, equities (.FTFADGI) added 0.2% in a choppy trade, helped by a 0.9% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
ADNOC Drilling Company (ADNOCDRILL.AD) climbed 2% after reporting a rise in second-quarter profit.
The Qatari benchmark (.QSI) fell 0.3%, hit by a 1.9% fall in Qatar International Islamic Bank (QIIB.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.8%, weighed down by a 1.3% fall in top lender Commercial International Bank Egypt (COMI.CA).
However, Beltone Financial Holding (BTFH.CA), which is not part of the index, surged 13% after Abu Dhabi investment firm Chimera Investment acquired a controlling stake in the firm.
#AbuDhabi’s Eshraq completes Goldilocks acquisition, says assets now exceed $1.34bln
Abu Dhabi’s Eshraq completes Goldilocks acquisition, says assets now exceed $1.34bln
Abu Dhabi-listed Eshraq Investments has completed its acquisition of 99.25% of the Shuaa Capital-managed Goldilocks Fund, while also announcing an exit and two acquisitions by the newly acquired fund.
The company said after both a capital decrease and issuing new shares, the new issued capital of Eshraq is AED 2.82 billion ($768 million) and its assets exceed AED 3.8 billion ($1.34 billion), with the book value expected to be AED 0.92-0.96 per share.
In a statement about the acquisition of Goldilocks, which was first announced in March, Eshraq said it had completed a capital decrease to absorb accumulated losses, reducing capital from AED 2.325 billion to AED 1.435 billion.
It then issued 1,385,073,097 new shares at a nominal value of AED 1 and registered them in the name of the New Shareholders in exchange for their share in the holding, pursuant to the agreed share of the acquisition, the statement said.
Abu Dhabi-listed Eshraq Investments has completed its acquisition of 99.25% of the Shuaa Capital-managed Goldilocks Fund, while also announcing an exit and two acquisitions by the newly acquired fund.
The company said after both a capital decrease and issuing new shares, the new issued capital of Eshraq is AED 2.82 billion ($768 million) and its assets exceed AED 3.8 billion ($1.34 billion), with the book value expected to be AED 0.92-0.96 per share.
In a statement about the acquisition of Goldilocks, which was first announced in March, Eshraq said it had completed a capital decrease to absorb accumulated losses, reducing capital from AED 2.325 billion to AED 1.435 billion.
It then issued 1,385,073,097 new shares at a nominal value of AED 1 and registered them in the name of the New Shareholders in exchange for their share in the holding, pursuant to the agreed share of the acquisition, the statement said.
Oil rises as Russian pipeline halt revives supply fears | Reuters
Oil rises as Russian pipeline halt revives supply fears | Reuters
Oil rose over $1 a barrel on Tuesday, reversing an earlier decline, after Russia said oil exports to Europe via the southern leg of the Druzhba pipeline had been suspended since early August, reviving concern about tight supply.
Russian pipeline monopoly Transneft said Ukraine had suspended oil flows via the pipeline leg because Western sanctions had prevented a payment from Moscow for transit fees from going through. read more
"Not that we need it at this point but it's another reminder of how tight the market is and how sensitive the price is to supply disruptions, particularly those from Russia," said Craig Erlam of brokerage OANDA.
Brent crude was up $1.28, or 1.3%, to $97.93 a barrel at 1136 GMT, after earlier falling as low as $94.90. U.S. West Texas Intermediate (WTI) crude gained $1.18, or 1.3%, to $91.94.
The Druzhba development comes as supply worries had been abating amid growing concern about a recession. Earlier, oil was under pressure from progress in talks to revive the Iran nuclear accord, which would allow higher Iranian oil exports.
Oil rose over $1 a barrel on Tuesday, reversing an earlier decline, after Russia said oil exports to Europe via the southern leg of the Druzhba pipeline had been suspended since early August, reviving concern about tight supply.
Russian pipeline monopoly Transneft said Ukraine had suspended oil flows via the pipeline leg because Western sanctions had prevented a payment from Moscow for transit fees from going through. read more
"Not that we need it at this point but it's another reminder of how tight the market is and how sensitive the price is to supply disruptions, particularly those from Russia," said Craig Erlam of brokerage OANDA.
Brent crude was up $1.28, or 1.3%, to $97.93 a barrel at 1136 GMT, after earlier falling as low as $94.90. U.S. West Texas Intermediate (WTI) crude gained $1.18, or 1.3%, to $91.94.
The Druzhba development comes as supply worries had been abating amid growing concern about a recession. Earlier, oil was under pressure from progress in talks to revive the Iran nuclear accord, which would allow higher Iranian oil exports.
#AbuDhabi's Chimera buys majority of Egypt's Beltone Financial | Reuters
Abu Dhabi's Chimera buys majority of Egypt's Beltone Financial | Reuters
Abu Dhabi investment firm Chimera Investment LLC said on Tuesday it has acquired a controlling stake in Egypt's Beltone Financial Holding (BTFH.CA), part of a strategy to expand in the Middle East and North Africa region.
Chimera bought 55.9% of Beltone at 1.485 Egyptian pounds a share, valuing the company at 661.8 million pounds ($34.6 million), according to Reuters calculations.
Beltone announced on Tuesday that Dalia Khorshid, Egypt's former investment minister, would be its new chief executive officer.
Founded in 2006, Beltone is a financial services company that offers brokerage, investment banking, asset management, equity research and non-banking financial services in Egypt and the Middle East and North Africa.
Chimera was set up in 2007 and is part of Abu Dhabi's Royal Group, which is owned by Sheikh Tahnoun bin Zayed Al Nahyan, who is the United Arab Emirates' national security adviser and a half brother of the country's president, Mohammed bin Zayed.
Abu Dhabi investment firm Chimera Investment LLC said on Tuesday it has acquired a controlling stake in Egypt's Beltone Financial Holding (BTFH.CA), part of a strategy to expand in the Middle East and North Africa region.
Chimera bought 55.9% of Beltone at 1.485 Egyptian pounds a share, valuing the company at 661.8 million pounds ($34.6 million), according to Reuters calculations.
Beltone announced on Tuesday that Dalia Khorshid, Egypt's former investment minister, would be its new chief executive officer.
Founded in 2006, Beltone is a financial services company that offers brokerage, investment banking, asset management, equity research and non-banking financial services in Egypt and the Middle East and North Africa.
Chimera was set up in 2007 and is part of Abu Dhabi's Royal Group, which is owned by Sheikh Tahnoun bin Zayed Al Nahyan, who is the United Arab Emirates' national security adviser and a half brother of the country's president, Mohammed bin Zayed.
Major stock markets mixed in early trade | Reuters
Major stock markets mixed in early trade | Reuters
Stock markets in the Gulf were mixed in early trade on Tuesday, awaiting U.S. inflation data due the following day that will likely yield clues to any further aggressive Federal Reserve rate hikes.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, helped by a 1.4% rise in Saudi Basic Industries Corp (SABIC) (2010.SE) after the petrochemicals maker reported a 4% rise in second-quarter profit.
SABIC reported a net profit of 7.93 billion riyals ($2.1 billion) in the three months to June 30, up from 7.64 billion in the year-ago period. read more
Dubai's main share index (.DFMGI) gained 0.5%, with blue-chip developer Emaar Properties (EMAR.DU) advancing 1.5% and logistics firm Aramex jumping 4%.
The United Arab Emirates government's net operating surplus more than doubled in the first quarter to 36.4 billion dirhams ($9.9 billion) as surging oil prices boosted public revenue, finance ministry data showed on Monday.
High oil prices and increased production have been a boon for the UAE's economy this year, along with a continued decline in the impact of the pandemic.
In Abu Dhabi, equities (.FTFADGI) eased 0.2%, with conglomerate International Holding Co (IHC) (IHC.AD) falling 0.3% in a choppy trade, on course to snap three sessions of gains.
IHC reported a quarterly profit of 6.81 billion dirhams ($1.9 billion), up from 2.87 billion a year ago.
The Qatari index (.QSI) was flat, as gains in financial shares were offset by losses elsewhere.
Oil prices, a key catalyst for the Gulf's financial markets, slipped as traders eyed the latest progress in last-ditch talks to revive the 2015 nuclear accord with Iran, which would clear the way to boost its crude exports in a tight market.
Stock markets in the Gulf were mixed in early trade on Tuesday, awaiting U.S. inflation data due the following day that will likely yield clues to any further aggressive Federal Reserve rate hikes.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, helped by a 1.4% rise in Saudi Basic Industries Corp (SABIC) (2010.SE) after the petrochemicals maker reported a 4% rise in second-quarter profit.
SABIC reported a net profit of 7.93 billion riyals ($2.1 billion) in the three months to June 30, up from 7.64 billion in the year-ago period. read more
Dubai's main share index (.DFMGI) gained 0.5%, with blue-chip developer Emaar Properties (EMAR.DU) advancing 1.5% and logistics firm Aramex jumping 4%.
The United Arab Emirates government's net operating surplus more than doubled in the first quarter to 36.4 billion dirhams ($9.9 billion) as surging oil prices boosted public revenue, finance ministry data showed on Monday.
High oil prices and increased production have been a boon for the UAE's economy this year, along with a continued decline in the impact of the pandemic.
In Abu Dhabi, equities (.FTFADGI) eased 0.2%, with conglomerate International Holding Co (IHC) (IHC.AD) falling 0.3% in a choppy trade, on course to snap three sessions of gains.
IHC reported a quarterly profit of 6.81 billion dirhams ($1.9 billion), up from 2.87 billion a year ago.
The Qatari index (.QSI) was flat, as gains in financial shares were offset by losses elsewhere.
Oil prices, a key catalyst for the Gulf's financial markets, slipped as traders eyed the latest progress in last-ditch talks to revive the 2015 nuclear accord with Iran, which would clear the way to boost its crude exports in a tight market.
Dubai Inflation: Year of Discounting Ends in #Dubai as Firms Feel Inflation Sting - Bloomberg
Dubai Inflation: Year of Discounting Ends in Dubai as Firms Feel Inflation Sting - Bloomberg
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Companies in Dubai ended a 12-month stretch of discounting in July as cost pressures mounted and the local economy powered ahead.
Competition in the emirate has meant that non-energy private firms didn’t always pass on higher costs even as their margins suffered. But while input cost inflation eased in July after four months of gains, businesses “reported a stable trend in prices charged for goods and services,” according to a report from S&P Global on Tuesday.
In a sign of improving business conditions in the non-oil private sector, S&P Purchasing Managers’ Index for Dubai rose to 56.4 last month from 56.1 in June. It’s been above the 50-mark separating growth from contraction since late 2020.
“Input price inflation remained among the fastest on record despite slowing from June’s 53-month high,” David Owen, economist at S&P Global Market Intelligence, said in the report. “There was also evidence of rising pressure on firms’ selling prices.”
While not as intense as in other parts of the world, inflation is percolating in the oil-rich Gulf. The United Arab Emirates, of which Dubai is a part, is among countries in the region that set aside billions of dollars in inflation relief.
Consumer price growth in Dubai, which was negative for nearly three years, approached an annual 6% in June. Firms in travel and tourism last month reported the fastest increase in prices charged since March 2017, according to S&P.
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Companies in Dubai ended a 12-month stretch of discounting in July as cost pressures mounted and the local economy powered ahead.
Competition in the emirate has meant that non-energy private firms didn’t always pass on higher costs even as their margins suffered. But while input cost inflation eased in July after four months of gains, businesses “reported a stable trend in prices charged for goods and services,” according to a report from S&P Global on Tuesday.
In a sign of improving business conditions in the non-oil private sector, S&P Purchasing Managers’ Index for Dubai rose to 56.4 last month from 56.1 in June. It’s been above the 50-mark separating growth from contraction since late 2020.
“Input price inflation remained among the fastest on record despite slowing from June’s 53-month high,” David Owen, economist at S&P Global Market Intelligence, said in the report. “There was also evidence of rising pressure on firms’ selling prices.”
While not as intense as in other parts of the world, inflation is percolating in the oil-rich Gulf. The United Arab Emirates, of which Dubai is a part, is among countries in the region that set aside billions of dollars in inflation relief.
Consumer price growth in Dubai, which was negative for nearly three years, approached an annual 6% in June. Firms in travel and tourism last month reported the fastest increase in prices charged since March 2017, according to S&P.
#SaudiArabia: Sabic Says Profit Rose 3.8% But Margins Remain Under Pressure - Bloomberg
Saudi Arabia: Sabic Says Profit Rose 3.8% But Margins Remain Under Pressure - Bloomberg
Chemicals behemoth Saudi Basic Industries Corp. reported a 3.8% increase in quarterly earnings, but warned profit margins will remain “under pressure” as costs climb.
Prices of products such as polyethylene and polyvinyl chloride -- used to make everything from plastics to building materials -- have jumped as economies recover from the pandemic, boosting demand. Yet a supply-chain squeeze has pushed up expenses for producers.
Sabic, as the Saudi Arabian company is known, said net income rose to 7.93 billion riyals ($2.1 billion) in the second quarter from 7.64 billion riyals a year earlier. Revenue climbed 32% to 56 billion riyals, beating analysts’ estimates.
The Riyadh-based company, controlled by oil giant Saudi Aramco, said the results reflect higher selling prices and sales volumes, despite rising costs for feedstock and distribution. It gave a cautious outlook for the rest of the year amid fears of a flagging global economy.
Chemicals behemoth Saudi Basic Industries Corp. reported a 3.8% increase in quarterly earnings, but warned profit margins will remain “under pressure” as costs climb.
Prices of products such as polyethylene and polyvinyl chloride -- used to make everything from plastics to building materials -- have jumped as economies recover from the pandemic, boosting demand. Yet a supply-chain squeeze has pushed up expenses for producers.
Sabic, as the Saudi Arabian company is known, said net income rose to 7.93 billion riyals ($2.1 billion) in the second quarter from 7.64 billion riyals a year earlier. Revenue climbed 32% to 56 billion riyals, beating analysts’ estimates.
The Riyadh-based company, controlled by oil giant Saudi Aramco, said the results reflect higher selling prices and sales volumes, despite rising costs for feedstock and distribution. It gave a cautious outlook for the rest of the year amid fears of a flagging global economy.
Oil slips amid chance of Iran nuclear deal supply boost | Reuters
Oil slips amid chance of Iran nuclear deal supply boost | Reuters
Oil dropped over $1 a barrel on Tuesday, approaching a multi-month low hit last week, pressured by the latest progress in talks to revive the 2015 Iran nuclear accord, which would eventually allow Tehran to boost exports in a tight market.
The European Union on Monday put forward a "final" text to revive the deal. A senior EU official said a final decision on the proposal, which needs U.S. and Iranian approval, was expected within "very, very few weeks". read more
Brent crude fell $1.34, or 1.4%, to $95.31 a barrel at 0815 GMT. U.S. West Texas Intermediate (WTI) crude dropped $1.25, or 1.4%, to $89.51.
"I'm not sure traders are particularly hopeful considering how long it's taken to get to this point and with there still reportedly being points of contention," said Craig Erlam of brokerage OANDA.
Oil dropped over $1 a barrel on Tuesday, approaching a multi-month low hit last week, pressured by the latest progress in talks to revive the 2015 Iran nuclear accord, which would eventually allow Tehran to boost exports in a tight market.
The European Union on Monday put forward a "final" text to revive the deal. A senior EU official said a final decision on the proposal, which needs U.S. and Iranian approval, was expected within "very, very few weeks". read more
Brent crude fell $1.34, or 1.4%, to $95.31 a barrel at 0815 GMT. U.S. West Texas Intermediate (WTI) crude dropped $1.25, or 1.4%, to $89.51.
"I'm not sure traders are particularly hopeful considering how long it's taken to get to this point and with there still reportedly being points of contention," said Craig Erlam of brokerage OANDA.