OIL PRICE: ABOVE $60 YET

REUTERS, BLOOMBERG  - Oil markets were firm on Monday, with Brent remaining above $60 per barrel on expectations that an OPEC-led production cut due to expire next March would be extended, although rising exports from Iraq kept a lid on prices. 

Brent crude futures, the international benchmark for oil prices, were at $60.55 per barrel at 0655 GMT, 10 cents or 0.15 percent above their last settlement and near their highest level since July 2015. They have risen more than 36 percent since from 2017-lows marked in June. 

U.S. West Texas Intermediate (WTI) crude futures were up 11 cents, or 0.2 percent, at $54.01 a barrel. 

"With strong compliance to OPEC's production curbs already supporting prices, comments from the Saudi Arabian Crown Prince that suggested the production cut agreement should be extended added to gains," ANZ bank said. 

The Organization of the Petroleum Exporting Countries (OPEC) plus Russia and nine other producers have agreed to hold back about 1.8 million barrels per day (bpd) to get rid of a supply glut. The pact runs to March 2018, but Saudi Arabia and Russia, who are leading the effort, have both voiced their support to extend the agreement. 

OPEC is scheduled to meet officially at its headquarters in Vienna, Austria, on Nov. 30. 

Traders said that a a 900,000 bpd export capacity increase from Iraq's southern ports to 4.6 million bpd, reported on Sunday, had prevented Brent from rising further. 

Meanwhile, U.S. production is up by almost 13 percent since mid-2016, resulting in a steep WTI discount of $6.50 per barrel against Brent, making U.S. crude exports attractive. 

Confidence in the oil market is evident in the way financial traders have positioned themselves. 

Hedge funds and other money managers raised their bullish wagers on U.S. crude futures and options in the week to Oct. 24, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. 

The speculator group raised its combined futures and options position in New York and London by 15,041 contracts to 280,634 during the period. 

Despite this, some analysts were cautious, pointing to technical chart indicators. 

"We note that both contracts' (Brent and WTI) relative strength indices (RSI) are both approaching overbought levels. This may imply that crude has risen enough in the short term and some consolidation is required," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

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Earlier:

October, 27, 19:40:00 OIL PRICE: ABOVE $60 Brent LCOc1 rose 59 cents to $58.89 a barrel by 10:51 a.m. ET, after rising to a session high of $60.08, the highest since July 2015 and more than 35 percent above its 2017 lows touched in June. U.S. light crude oil CLc1 was up 78 cents, or 1.48 percent at $53.42 after rising to a session high of $53.52 a barrel. U.S. crude prices have been capped by rising U.S. production. Русский | English

October, 27, 19:35:00 НЕФТЬ: ЦЕНА ВЫШЕ «Средняя цена на нефть выше примерно на 30% по сравнению с прошлым годом. Также мы наблюдаем оздоровление экономики и повышение спроса. Еще один результат соглашения – достигнутый уровень доверия между странами», - сказал Александр Новак.

October, 27, 19:30:00 СПРОС НА НЕФТЬ ВЫРАСТЕТ Отвечая на вопрос о прогнозе мирового потребления нефти, Александр Новак отметил, что спрос на нефть будет расти в ближайшие пару десятилетий, но более низкими темпами, чем рост экономики. «Чуть меньше 1% в период ближайших 15-20 лет», - пояснил Министр.

October, 27, 19:25:00 SAUDIS SUPPORTS THE REDUCTION Oil closed at its highest in more than two years in London, nearing $60 a barrel, as Saudi Crown Prince Mohammed bin Salman backed the extension of OPEC output cuts.

October, 25, 12:35:00 OPTIMISTIC OIL PRICES Futures edged higher from the settlement in after-market trading in New York, prompted by reports that data from the American Petroleum Institute showed a 5.75 million barrel drop in gasoline last week and 4.95 million fewer barrels of distillate. Meanwhile, OPEC, set to meet next month on prolonging the cuts, are said to be planning how to prevent a new price-killing glut once they end.

October, 25, 12:30:00 OIL PRICES NO OPPORTUNITIES "They [big OPEC and Middle Eastern producers] cannot be too ambitious [on their oil price targets]...there's not much [upside] room for them to hope for," Sadamori said. "Once the oil price goes to certain levels, this will stimulate new drilling and investments in North America," he added.

October, 11, 12:50:00 OIL PRICES 2020: $50 - $60 Based on a “lower-for-longer” base-case scenario, global oil prices will remain in the $50-60/bbl range until late 2020, due to increasing supply that breaks even at $50/bbl, according to to the most recent global oil supply and demand outlook from McKinsey Energy Insights (MEI).