Opec Likely to Extend Supply Cuts to Rebalance Market

The purge in Saudi under King Salman has led to a political upheaval leading to rise in crude oil prices

Last week, Brent rose to $64.65, its highest since June 2015, and WTI hit $57.92, its highest since July 2015.

"The rise by Saudi Arabia to produce more than 10 million barrels per day would have registered more", said John Kilduff Partner at Again Capital. "So we will continue to maintain the same level of production for the next year", H E Rumhi said. Additionally, the market has less supply overhang than it did a year ago, he said.

Regional concerns in the Middle East include the war in Yemen and growing tensions between Saudi Arabia and Iran.

Korea says S. Korea-US drills could lead to war
Trump, who is on the final leg of his crucial Asia tour, made North Korea a top priority in his 12-day-long trip. The Reagan - homeported in Japan - joined the other two carriers, which are based in the Western United States.

Bahrain said at the weekend that an explosion that caused a fire at its main oil pipeline on Friday was caused by sabotage, linking the attack to Iran, which denied any role.

"The excess of OECD oil inventories over their five-year average levels has fallen by more than 50 percent in 2017, with inventories now at around 160 million barrels".

Barkindo also said that the cuts were the "only viable option" to stabilize the oil market, while Al Mazrouei said that OPEC and its non-OPEC partners were expected to unanimously decide to extend the production cuts at the Vienna meeting on November 30, but the duration of the extension was still under negotiation. Before slashing its production as part of the agreement, Oman was producing almost a million barrels per day. "We are not going to meet in that quarter unless it is extraordinary", Mazroui said at an energy industry conference. "If current trends continue, inventories are likely to return to the five-year average at some stage in 2018", consultancy Timera Energy said on Monday, adding that strong demand had also helped reduce the glut.

Aussie same-sex marriage vote results in
Prime Minister Malcolm Turnbull flew in to Australia overnight following a five-day series of leader meetings in south-east Asia.

Fitch Ratings said in its 2018 oil outlook that it assumed 2018 "average oil prices will be broadly unchanged year-on-year and that the recent price recovery with Brent exceeding $60 per barrel may not be sustained". This led to a slide in crude futures prices late on Friday away from over two-year highs reached early last week. Managers now hold net long positions equivalent to almost 544 million barrels of oil.

Despite expectations for uptick in US output, traders remained confident that Opec's output curbs would continue to support upside momentum in crude prices ahead of the upcoming Nov, 30 Opec meeting, at which it's widely expected that Opec will extend its global accord on production cuts beyond March.

The U.S. government said on Monday U.S. shale production in December would rise for a 12th consecutive month, increasing by 80,000 bpd.

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If you want to use Files Go to share a picture or document with someone else, just go to the Files tab and tap the Send button. Google already includes a cleanup utility in their Google Photos app , but this is much broader in choices and functionality.

The rig count is also much higher than a year ago when only 452 rigs were active, indicating that the USA oil industry is comfortable operating at current prices.

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