OIL PRICE: NOT BELOW $55
REUTERS, BLOOMBERG, OILPRICE - Oil prices stabilized on Monday after one of the most bearish weeks in months, propped up by OPEC comments signaling the possibility of continued action to restore market balance in the long term.
Oil production platforms in the Gulf of Mexico started returning to service after Hurricane Nate forced the shutdown of more than 90 percent of crude output in the area. The prospective restarts kept price gains in check.
Former hurricane Nate has become a post-tropical cyclone that continues to pack heavy rain and gusty winds, the U.S. National Hurricane Center (NHC) said on Monday.
"Quiet market overall this morning though (refined) products are weaker as it looks like Nate was a non-event for refining," said Scott Shelton, broker at ICAP in Durham, North Carolina.
"I think that without the support of products and Brent, the market may get dragged lower in the near term as its apparent that the market doesn't care much about OPEC already jawboning about an extension of the deal."
The Organization of the Petroleum Exporting Countries is due to meet in Vienna on Nov. 30, when it will discuss its pact to reduce output in order to prop up the market.
OPEC Secretary-General Mohammad Barkindo said on Sunday that consultations were under way for an extension of the agreement beyond March 2018 and that more oil-producing nations may join the pact, possibly at the November meeting.
He also said OPEC members and other producers may have to take some "extraordinary measures" to ensure the market is in balance in the long term.
In a speech to the Reuters Global Commodities Summit on Monday, Barkindo said he saw clear evidence the oil market was rebalancing.
Global benchmark Brent crude LCOc1 was down 2 cents at $55.60 a barrel at 11:31 a.m. EDT (1531 GMT). Earlier in the session it touched a three-week low of $55.06. It ended last week 3.3 percent lower, its biggest weekly loss since June 2017.
U.S. West Texas Intermediate crude futures CLc1 were trading at $49.46, up 17 cents. They came close to a four-week low when they fell to $49.13 earlier in the session. WTI's losses last week came to 4.6 percent.
In further signs that OPEC members are sticking to agreed cuts, Saudi Arabia said it had curtailed crude allocations for November by 560,000 barrels per day and Iraq's oil minister said the country was fully committed to its OPEC production target.
Among other bullish news for oil, Morgan Stanley cut its forecast for U.S. crude output growth, citing a range of operational headwinds including limited availability of fracking crews.
Money managers raised their bullish bets on U.S. crude futures for the third week in a row, the U.S. Commodity Futures Trading Commission reported on Friday.
However, data published by InterContinental Exchange showed investors had slightly reduced their bets on rising Brent prices in the week ending Oct. 3.
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API - American Petroleum Institute reported that the first four months of this year saw U.S. petroleum demand average 750 thousand barrels a day above the same period in 2017 despite higher prices, a sign of solid economic activity. April also saw the U.S. produce a record 10.5 million barrels per day (MBD) of oil.
IMF - “Egypt’s growth has continued to accelerate during 2017/18, rising to 5.2 percent in the first half of the year from 4.2 percent in 2016/17. The current account deficit has also declined sharply, reflecting the recovery in tourism and strong growth in remittances, while improved investor confidence has continued to support portfolio inflows. In addition, gross international reserves rose to $44 billion by end-April, equal to 7 months of imports.
BAKER HUGHES A GE - U.S. Rig Count is up 1 rig from last week to 1,046, with oil rigs unchanged at 844, gas rigs up 1 to 200, and miscellaneous rigs unchanged at 2. Canada Rig Count is up 4 rigs from last week to 83, with oil rigs up 6 to 38 and gas rigs down 2 to 45.
REUTERS - Brent crude futures LCOc1 were at $79.57 per barrel at 0310 GMT, up 27 cents, or 0.3 percent from their last close. Brent broke through $80 for the first time since November 2014 on Thursday. U.S. West Texas Intermediate (WTI) crude futures were at $71.62 a barrel, up 13 cents, or 0.2 percent, from their last settlement.