Crude oil prices rally on Monday

Brent weekly chart

Brent weekly chart

The OPEC, Russia and several other producers have cut production by about 1.8 million barrels per day (bpd) since January.

U.S. West Texas Intermediate (WTI) crude futures gained 0.30% to $50.70 a barrel. USA crude for November delivery was down 4 cents at United States dollars 50.62, having risen 0.2% on Friday.

Top oil executives gathered at the S&P Global Platts APPEC conference in Singapore said strong oil demand this year was accelerating market rebalancing and helping inventory drawdowns.

Iraqi Oil Minister Jabbar al-Luaibi said on Tuesday an extension by OPEC certainly was on the cards and Algerian Energy Minister Mustapha Guitouni concurred.

Brent crude futures fell 38 cents to $58.64 a barrel by 1001 GMT, having hit $59.49, the highest since July 2015 and more than 34 per cent above the 2017 low. Taiwan (中油) will increase domestic gasoline and diesel prices on Monday by NT$0.3 (US$0.009) and NT$0.4 per liter respectively, pushing prices at the pump to a near seven-month high.

On Friday, the Organisation of the Petroleum Exporting Countries and other producers will meet in Vienna to discuss the progress of their deal to limit output.

Almarzooq noted that the de-stocking process had accelerated in recent months, adding that the most recent data for August 2017 now shows OECD commercial oil inventories around 170 million barrels above the five-year average.

In one of the major US shale plays, the Permian Basin, output is expected to surge to 2.9 million bpd by next year from the current 2.4 million, Ryan Krogmeier, vice president of crude supply and trading at Chevron, told the S&P Global Platts Asia Pacific Petroleum Conference in Singapore on Monday.

Therefore, it is possible that USA production may even drop in the next few months, adding further fuel to the rally.

There are many ways to measure that but many in the industry are suggesting that supply is tightening more significantly than the major reporting agencies are reporting.

Oil prices have been volatile and sometimes stuck in a range this year as OPEC attempts to clear the world oil glut were often met with skepticism by traders and investors. "At the same time, without any firm plans for after March 2018, discussions will start about the end game of the OPEC deal and erode confidence". It was last trading up 60 cents, or 1.2 percent, at $51.26.

Nigeria is pumping below its agreed output cap, its oil minister, Ibe Kachikwu said.

"I think we all are happy to hear this news about a two-year high".

The net long position in US heating oil rose by a further 5 million barrels to 51 million, the highest since February 2013.

Between 2014 and 2016, global oil companies reduced spending by a whopping 40%, efforts that included significant layoffs and withdrawals from projects seen as too expensive or unlikely to bear near-term profits.

Recommended News

  • The Truth About Jared Goff, Continued

    The Truth About Jared Goff, Continued

    At that point, the 49ers only had one shot at winning, and it involved recovering an onside kick, which is exactly what they did. Goff's progression and Watkins being healthy have given the Rams reason for optimism, and a 2-1 start to the 2017 season.
    Fed holds off on September rate hike, announces plans for debt sell-off

    Fed holds off on September rate hike, announces plans for debt sell-off

    The Dow Jones Industrial Average .DJI rose 41.79 points, or 0.19 percent to end at 22,412.59, its seventh straight record close. That means the OECD is expecting eurozone growth this year to match the US rate, which it left unchanged.
    Markets Pause As FOMC Meeting Begins Tuesday

    Markets Pause As FOMC Meeting Begins Tuesday

    The Fed's preferred measure of inflation has touched the 2 percent target once or twice since the 2008 collapse, but that's it. Movers: Shares of J Sainsbury PLC (SBRY.LN) rose 1.9% even as the grocer lost market share in the 12 weeks to September 10.
  • Justin Thomas bags $10m bonus

    Justin Thomas bags $10m bonus

    Top-seeded Jordan Spieth followed his 70 on Friday with a one-under 69 to reach a four-under 206 total, eight shots back of Casey. Five players, including Thomas , controlled their own playoff destiny if they could capture the Tour Championship this week.
    Reed's predicted demise of Graham-Cassidy will probably come true

    Reed's predicted demise of Graham-Cassidy will probably come true

    Since Republicans control 52 of the Senate's 100 seats, and all Democrats are expected to vote no, the plan is in huge trouble. It would limit spending for Medicaid, the federal-state program that now covers more than 70 million low-income people.
    Vikings QB Sam Bradford ruled out for Week 3 vs

    Vikings QB Sam Bradford ruled out for Week 3 vs

    As to Bridgewater, on September 2 Minnesota put him on its PUP list, costing him at least about half of this season. Bradford didn't play in last Sunday's loss to the Steelers , and now won't take the field against the Bucs.
  • German election results unlikely to alter relations with Czech Republic

    German election results unlikely to alter relations with Czech Republic

    The AfD approach is abhorrent and often nonsensical, says Gero Neugebauer, a retired professor and political analyst in Berlin . The UK and Ireland historically voted in similar ways on important issues regarding trade and openness, agriculture and tax.

    Equifax Has Been Pointing People to a Knockoff Phishing Site

    Grossman said, "We've seen a $6 billion loss in market cap, estimated losses from these breaches in excess of $20 billion". Attorney General Healey is seeking unspecified civil penalties, restitution and damages for the impacted residents.

    Kuldeep makes history with hat-trick

    And the dark clouds are expected to hover over the stadium when the two teams meet in the second of the five-match ODI series. Meanwhile, Eden Gardens pitch curator Sujan Mukherjee claimed the track would be sporting and aid both batsmen and bowlers.
  • India thrash Australia by 5 wickets to clinch ODI series

    India thrash Australia by 5 wickets to clinch ODI series

    With a series win at the venture, India is now very strong team with Manish Pandey proved him so good at the match. This is the first time India have beaten Australia in each of the first three matches of a bilateral ODI series.
    12-Year-Old Darci Lynne Wins America's Got Talent

    12-Year-Old Darci Lynne Wins America's Got Talent

    In a tense final result, Darci went up against fellow youngster, 9-year-old singer Angelica Hale . She's continually worked the judges into her act and often has the puppets play fighting.
    Odell Beckham Jr. Returns, but Giants Sputter Against Lions

    Odell Beckham Jr. Returns, but Giants Sputter Against Lions

    Which of these NY offenses turns up tonight may depend on how effective the Lions can disrupt them and get in Manning's face. You really have to wonder how much coaching is this guy absorbing? That's nine yards per catch, without a touchdown.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.