Oil prices rise on reported United States crude stock draw, Norway strike

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OPEC Secretary-General Mohammed Barkindo said he expected the potential freeze deal between OPEC and other producers to last one year, longer than previously thought.

US West Texas Intermediate (WTI) crude futures rose 95 cents, or 2.1 per cent, to $45.

Around 1130 GMT, Brent North Sea crude for delivery in November was down 48 cents at Dollars 45.46 a barrel compared with today's close.

Market analysts' expected a crude-stock increase of 3.35 million barrels, while the American Petroleum Institute late Tuesday reported a supply draw of a whopping 7.5 million barrels.

But the market was encouraged after Venezuelan President Nicholas Maduro said on Sunday that participants in coming producer talks by the 14-nation OPEC cartel and Russian Federation are working on a deal.

Even if a production freeze is agreed, market fundamentals will see little changes given that most members are pumping at or near maximum capacity, according to BMI Research.

Saudi crude exports rose in July to 7.62 million barrels per day from 7.46 million bpd in June, data on Monday showed. Opec ministers can transform the gathering into an extraordinary meeting since they will all be present, Algerian Energy Minister Noureddine Bouterfa said on public radio. The October contract expired yesterday at US$43.44 a barrel and the front-month has now rolled over to November delivery.

"It was really an odd market for oil today, with different drivers for the two crude benchmarks and petrol", said a New York-based energy broker.

Oil prices jumped on Monday after Venezuela's President Nicolas Maduro said OPEC and non-OPEC countries are close to reaching a deal to stabilise markets. US crude stockpiles dropped by 7.5 million barrels last week, the American Petroleum Institute was said to report Tuesday.

Russian Federation and members of the Organization of the Petroleum Exporting Countries hold an informal meeting in Algiers on September 28.

Market expectations are for U.S. commercial crude reserves to have jumped by 3.25 million barrels in the week to September 16, according to analysts polled by Bloomberg News. OPEC members and Russian Federation failed to agree at a meeting in Doha in April to limit production after Iran declined to attend and Saudi Arabia refused to proceed without all of the OPEC states participating.