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UPDATE 9-Crude up over 2 pct as gasoline jumps, Russia mulls oil talks

Published 2015-10-05, 01:31 p/m
© Reuters.  UPDATE 9-Crude up over 2 pct as gasoline jumps, Russia mulls oil talks
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* Gasoline up nearly 4 pct, helps drive other products up
* Russia-Saudi talks planned for end of October

(Adds latest market moves, details)
By Barani Krishnan
NEW YORK, Oct 5 (Reuters) - Crude oil prices rose more than
2 percent on Monday, bolstered by a rally in U.S. gasoline and
Russia's willingness to meet other major oil producers to
discuss the market.
Higher stock prices on Wall Street provided further support
to oil and other dollar-denominated commodities. MKTS/GLOB
Global crude benchmark Brent LCOc1 rose by $1.35, or 2.7
percent, to $49.48 a barrel by 1:20 p.m. EDT (1720 GMT) after
striking a session high at $49.87.
U.S. crude CLc1 was up 96 cents, or 2 percent, at $46.50
after an intraday peak at $46.94.
Gasoline RBc1 surged nearly 4 percent, helping drive up
prices for both crude and other refined fuels.
"Fuel products are leading the way today though they also
seem to be deriving their strength from the broader risk
appetite contributed by the equities rally," said Peter Donovan,
broker at Liquidity Energy in New York.
Russia, one of the world's top three oil producers, said it
was prepared to meet OPEC and non-OPEC oil producers to discuss
the market if such a meeting is called. A separate meeting
between Russian and Saudi officials was being planned for the
end of October, Russian Energy Minister Alexander Novak has
said. ID:nL5N1230ET ID:nL5N1220M4
Moscow had been unwilling in the past to cut its oil output
to support prices. Last November, it declined to cooperate with
the Organization of the Petroleum Exporting Countries to defend
market share.
Russian oil output hit a new post-Soviet monthly high of
10.74 million barrels per day in September, despite a drop in
global crude prices to 6-1/2-year lows in August.
Despite Monday's rally, some analysts braced for renewed
pressure on oil prices from U.S. government data this week that
could show further builds in crude inventories.
Market intelligence firm Genscape reported a modest drop of
about 150,000 barrels on the week for inventories at the
Cushing, Oklahoma storage hub for U.S. crude, traders who saw
the data said.
That sparked concern among some that there would be builds
instead of draws in Cushing when the U.S. Energy Information
Administration reports weekly storage data on Wednesday.
The EIA said U.S. oil stockpiles in total rose nearly 4
million barrels the week ending Sept. 25. ID:nL1N1201BG
"We still are bearish on oil given the excess in the market,
and the time required to clear all the excess crude and oil
products supply," Abhishek Deshpande, London-based analyst for
French bank Natixis, told the Reuters Global Oil Forum.

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