Opec to discuss extending oil cuts by more than 3 months

Kristopher Drake
September 13, 2017

Amid persistent glut concerns, Saudi Arabian Energy Minister Khalid al-Falih had talks with his Venezuelan, Kazakh counterparts about the possibility of extending supply cuts beyond March 2018.

"Irma will have a negative impact on oil demand but not on oil production or processing", Goldman analysts said in a note, Oil Price reported.

USA crude futures rose 17 cents, or 0.35%, to $48.24 a barrel on the New York Mercantile Exchange.

Crude futures fluctuated between gains and losses on Tuesday, ahead of an anticipated OPEC oil production report and on concerns of waning US demand.

Brent for November settlement climbed 40 cents to $54.24 a barrel on the London-based ICE Futures Europe exchange.

Hurricane Irma knocked out power to over 7.3 million in Florida, Georgia, South Carolina and Alabama, according to state officials and utilities on Monday.

Libyan production-which has undercut OPEC's efforts-fell significantly by 112,300 barrels in August, to 890,000 barrels a day, a result of pipeline closures and disruptions at its oil fields, the report showed.

The deal was extended for another nine months in May 2017. A separate report showed that US oil production dropped sharply to 8.78 million barrels per day due to hurricane effect. In the first half of this year, crude oil price declined by around 15 percent, which is its worst H1 showing in 19 years.

USA inventories data will be closely watched over the next two days amid uncertainties over the impact of recent hurricanes.

The deal agreed late past year to reduce output by about 1.8 million bpd until March 2018 helped to keep prices as high as $58 a barrel in January, but they have since sagged as global stocks have not fallen as quickly as expected.

Moreover, OPEC may also place "stricter requirements" on Iran's oil production, said Commerzbank analysts in a recent report.

The U.S. Department of Energy's Energy Information Administration (EIA) reports Wednesday.

The OPEC of which Saudi Arabia is the leader, and other producers including Russian Federation, have agreed to trim their output by almost 1.8 million bpd until next March.

Other reports by Ligue1talk

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