OIL PRICE: ABOVE $46
According to REUTERS, oil prices rose by over 1 percent on Monday, pushed up by a statement from the producers' club OPEC that it was committed to a deal made in September to cut output in order to prop up the market.
Brent crude futures LCOc1 were trading at $46.29 per barrel at 0705 GMT, up 71 cents, or 1.56 percent, from their previous close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 730 cents, or 1.66 percent, at $44.80 a barrel.
The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) said on Monday the group was committed to a deal made in Algiers to cut output.
"We as OPEC we remain committed to the Algiers accord that we... put together. All OPEC 14 we remain committed to the implementation," Mohammed Barkindo told reporters at a conference in Abu Dhabi.
Despite these statements, many analysts doubt that OPEC and other producers outside the cartel, like Russia, can agree on a coordinated cut.
"Individual country details still remain challenging to agree upon," Barclays bank said in a note to clients.
"Iraq boosted production while Saudi Arabia asked for exceptions. Russia is still sitting on the sidelines, and none of the non-OPEC members consulted thus far has expressed any intention of a cut," Barclays said.
Such doubts, as well as ongoing oversupply, had by last Friday pulled Brent as low as $45.08, its weakest since Aug. 11.
WTI hit $43.57 on Friday, its lowest since Sept. 20.
Last week's losses were the steepest since January, and took nearly 15 percent off a one-year high hit in the first-half of October.
There are also risks that the oil supply overhang, which has dogged markets for the last two years, could continue as OPEC's de-facto leader Saudi Arabia threatened to increase production again should the upcoming meeting between producers lead to no result.
Even if Saudi Arabia does not follow through on that threat, its exports could rise.
"Saudi local oil demand is falling, and just maintaining current output could imply higher exports," Barclays said.
There were also signs of rising future U.S. output as the number of drilling rigs looking for new oil to produce rose by 9 to 450 in the week to Nov. 4, the highest level since February.
"Since its trough on May 27, 2016, producers have added 134 oil rigs (+40 percent) in the U.S.," Goldman Sachs said.
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BP and its partners in Azerbaijan's giant ACG oil production complex agreed Thursday to extend the production sharing contract by 25 years to 2049 and to increase the stake of state-owned SOCAR, reducing the size of their own shares.
The U.S. current-account deficit increased to $123.1 billion (preliminary) in the second quarter of 2017 from $113.5 billion (revised) in the first quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit increased to 2.6 percent of current-dollar gross domestic product (GDP) from 2.4 percent in the first quarter.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading up 41 cents, or 0.8 percent, at $50.30 by 0852 GMT, near the three-month high of $50.50 it reached last Thursday. Brent crude futures LCOc1, the benchmark for oil prices outside the United States, were at $55.91 a barrel, up 29 cents, and also not far from the near five-month high of $55.99 touched on Thursday.
“The principal risk regarding Russian and Chinese activities in Venezuela in the near term is that they will exploit the unfolding crisis, including the effect of US sanctions, to deepen their control over Venezuela’s resources, and their [financial] leverage over the country as an anti-US political and military partner,” observed R. Evan Ellis, a senior associate in the Center for Strategic and International Studies’ Americas Program.