"The fear of oversupply could easily turn to a fear of under-supply if inventories keep declining like they have been and demand continues to grow," says an investment analyst at Rivkin Securities. While the actual cuts aren't quite as high as the target, analysts say overall compliance has been strong. WTI Crude is at $54.02 and Brent Crude is at $60.77 this morning (via Investing.com).
Oil consumption is now running faster than production causing the market to steadily whittle away at excess inventories. The rebalancing trend is well underway, and within the next six to nine months, the trend will be more accurately described as tightening. WTI Crude is UP at $53.93, and Brent Crude is UP at $60.56 this morning (via Reuters).
Oil prices have been hovering near their highest for the year in recent weeks, amid signs of a tightening market. OPEC and some non-OPEC producers, including Russia, have pledged to reduce their production by around 1.8 million barrels per day until the end of March 2018 to drain a global supply glut. WTI Crude is steady at $52.54 and Brent Crude is at $59.19 this morning (via Reuters).
BRENT CRUDE CRASHES $60 PER BBL BARREL!
Oil prices pressed higher Friday morning, with Brent crude topping the elusive $60-a-barrel mark for the first time in more than two years (via The Wall Street Journal).
Saudi Crown Prince gives backing for an extension of oil production cuts beyond March 2018, sending a signal that Riyadh and Moscow are ready to prolong their collaboration to reduce oil supply and lift energy prices (via Bloomberg). Today, WTI Crude is UP at $52.28 and Brent is at $58.43.
Oil climbed yesterday, as Saudi Arabia reiterated a pledge to help balance the global crude market and geopolitical turmoil threatened global inventories, lifting U.S. prices to their highest finish since mid-April. Saudi oil minister Khalid al-Falih said Saudi Arabia is willing to “do whatever it takes” to bring global crude inventories back to their five-year average (via MarketWatch).
Oil’s move into a higher trading range is consistent with emerging fundamentals and is shown by U.S. oil drilling slowing, crude stocks falling, and consumption of refined fuels at home and with export markets. WTI Crude is UP at $52.31, and Brent is UP at $57.81 this morning (via Rigzone.com).
Storage data gathered by satellite suggests China may be consuming more oil than official data indicates. If accurate, this could have a bullish effect on oil fundamentals and also suggests the global supply-demand balance is tighter than estimated. WTI Crude is UP this morning at $52.13, and Brent is UP at $57.77 (via Bloomberg).
Several OPEC nations, including cartel kingpin Saudi Arabia, have discussed letting the production cut pact run through 2018. The agreement’s extension could be decided at the OPEC meeting in Vienna on Nov. 30. WTI Crude is down slightly at $50.84 with traders taking the week’s profits (via MarketWatch).
OPEC’s Mohammad Barkindo says there is no doubt the market is re-balancing at an accelerated pace, as evidenced by trading prices sitting near a two-year high. Stability is returning, and there is more light at the end of the tunnel we’ve been traveling down since the market dislocation of 2014 (via Investing.com).