Oil Producers’ Action Could Push Up Prices

Iran on Wednesday became the latest Gulf oil producer to increase its crude oil export prices sharply, in a collective move that could curtail the recent easing in global oil prices.

The fall in prices to $50 a barrel from a nominal record of $58.23 a month ago coincided with a build-up in global stockpiles to their highest level in six years.

This increase in inventories was encouraged by substantial discounts set by Middle Eastern members of the Organisation of the Petroleum Exporting Countries. Producers typically use such discounts to control demand and the final price paid by different customers for different qualities of crude oil.
FT.com