Oil prices rose by about 1 percent on Monday, with the expectation that top exporter Saudi Arabia will run the…
Oil prices rose by about 1 percent on Monday, with the expectation that top exporter Saudi Arabia will run the OPEC production group and perhaps Russia to reduce supply by the end of the year.
Future Brent Crude Oil Futures were at $ 67.41 a barrel at 0746 GMT, up 65 cents, or 1 percent, from their last closing.
US. West Texas Intermediate (WTI) raw futures, up 76 cents, or 1.4 percent, to $ 57.22 per barrel.
“Oil prices continued to recover … (as) the market will carefully look at the possible effect of a (delivery) decline.” said Sukrit Vijayakar, Head of Indian Energy Consultation Trifecta.
The organization of the petroleum exporting countries (OPEC), actually led by Saudi Arabia, drives the producer group and allies to cut 1
million to 1.4 million barrels per day (bpd) of the asset to adapt to a slowdown in demand growth and prevent overcrowding.
Russian energy minister Alexander Novak said Monday that Russia, which is not an OPEC member, intended to sign a partnership agreement with the group, and that the details would be discussed at the OPEC meeting on 6 December in Vienna.
In spite of Monday’s profits, the crude price remains almost a quarter past its last peaks in early October, offset by strong supply and a slowdown in demand.
This is due in part to Washington’s grant to Iran’s largest oil customers, mostly in Asia, unexpectedly wide exceptions from sanctions it resumed on Tehran in November.
Japanese refiner Fuji Oil is set to resume Iranian raw purchases after Japan has received one of these exceptions, industry sources familiar with the issue.
Japan had discontinued all purchases of Iranian oil before they got the suspension in early November.
Despite this, the markets were close to deep trade disputes between the world’s two largest economies, the United States and China, after the couple could not find a solution to their spat in Asia Pacific Economic Cooperation (APEC) last weekend.
Hussein Sayed, Market Manager at Futures Brokerage FXTM said US comments from APEC “suggest that an agreement between President Trump and President Xi is unlikely to see the light when leaders meet at the G20 summit later this month.”