The oil price is set for a 7 percent gain this week, its largest weekly increase since late August, after oil industry executives warned that this year’s fall below $50 would force higher-cost producers to reduce output.
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Brent was up $2.40, or 4.8 percent, at $51.65 a barrel by 12:11 p.m. EDT (1611 GMT).
Iran’s crude oil sales were on track to slip to the lowest in seven months as its main Asian customers were buying less than before. At the same time, news came that Russian Federation and Saudi Arabia along with other big producers have indicated about continuing discussions, which also supported the market.
Moreover, crude oil producing countries, such as Russian Federation and Saudi Arabia, pointed towards the possibility of supporting the market.
She is of the view that the crude prices will be in the range of Dollars 48-49 per barrel and in case of any decision taken by OPEC producers, the price could even rise to USD 60-70 per barrel next year.
WTI Crude Oil prices found a few support, after the American Petroleum Institute (API) reported that US Crude Oil inventory declined by 1.2-M bbl in the week ended 2 October, Vs an estimated gain of 2.5-M bbls, not a significant number considering the record number of bbls in storage.
On Tuesday, Crude Oil prices touched one-month highs after a new us estimate showed narrower oil supplies next year.
However, the world’s vast oil glut – which sent prices collapsing by 60 percent between June 2014 and January – continues to hurt sentiment.
OPEC’s el-Badri is right about the lack of new investment and what that will mean for future supply.
The USA benchmark, West Texas Intermediate crude, was 37 cents lower at $45.89 a barrel. Despite this, oil consumption at lower prices has risen by 1.3 million barrels a day, signaling “some light at the end of the tunnel”, according to el-Badri. We still see OPEC production at high level.
In its monthly supply-demand report on Tuesday, the EIA said global oil demand will grow in 2016 by the most in six years while non-OPEC supply stalls.
In a mirror image of a few arguments against the U.S.-led war in Iraq under President George W. Bush, a few Kremlin critics are now saying Russia’s intervention in Syria is all about oil.
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“The market is possibly moving on speculation that OPEC and non-OPEC countries will find an agreement to cooperate”, Carsten Fritsch, senior oil analyst at Commerzbank, said.
