OIL PRICE: $45.5
REUTERS wrote, oil edged further above $45 a barrel on Tuesday as forecasts for a drop in U.S. inventories and speculation of producer action to prop up prices countered concern about a supply glut.
Total U.S. crude inventories were expected to fall by 1 million barrels in weekly reports, although market intelligence firm Genscape has reported a rise of more than 307,000 barrels at the Cushing, Oklahoma U.S. crude delivery hub, traders said.
Brent crude for October LCOc1 was up 13 cents at $45.52 a barrel by 1042 GMT (0642 ET), after rising $1.12 on Monday. The global benchmark fell nearly 15 percent in July. U.S. crude for September CLc1 was up 21 cents at $43.23.
"One can only wonder how long this enthusiasm will last considering the oversupplied fundamental backdrop," said Tamas Varga of oil broker PVM. "Current oil price strength does not feel justified."
OPEC comments helped fuel the gain on Monday. Its president Qatar, in a rare statement issued by the group's Vienna headquarters, said the market was on the path to rebalancing and the drop in prices would be temporary.
OPEC sources have been saying since June that renewed talks about a global output freeze could take place in September, when most members, plus non-members such as Russia, are expected to attend an International Energy Forum meeting in Algeria.
The oil minister for cash-strapped Venezuela sought to keep alive the prospect of producer action to boost prices, saying on Monday a meeting between OPEC and non-OPEC countries may take place "in the coming weeks".
But Russia said it does not see grounds for new talks with OPEC yet. Iran, which refused to join an initiative discussed earlier this year to freeze output levels, has not said whether it would cooperate with any new effort.
Later on Tuesday, the latest round of U.S. inventory reports will be in focus. Analysts in a Reuters poll forecast that U.S. crude stockpiles fell by 1 million barrels last week.
The American Petroleum Institute, an industry group, is due to release its inventory update at 2030 GMT, ahead of the government's report on Wednesday.
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AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.