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2020-11-16 12:40:00

OIL PRICE: ABOVE $43

OIL PRICE: ABOVE $43

REUTERS - NOVEMBER 16, 2020 - Oil prices climbed on Monday, recouping some losses from the previous session as hopes that OPEC+ will hold current output curbs offset concerns over weaker fuel demand due to growing coronavirus infections and higher production in Libya.

Figures showing a rebound in the world’s second and third largest economies, China and Japan, also supported prices, along with data that Chinese refineries processed the most crude ever in October on a daily basis.

Brent crude futures for January LCOc1 rose 54 cents, or 1.3%, to $43.32 a barrel by 0723 GMT, while U.S. West Texas Intermediate crude for December CLc1 was at $40.76 a barrel, up 63 cents, or 1.6%.

“Fundamentally China’s numbers do support why oil prices can keep at these levels,” said OCBC economist Howie Lee.

Both contracts gained more than 8% last week on hopes of a vaccine for COVID-19 and that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will maintain lower output next year to support prices.

The group, also known as OPEC+, has been cutting production by about 7.7 million barrels a day, with a compliance rate seen at 101% in October, and had planned to increase output by 2 million bpd from January.

OPEC+ is set to hold a ministerial committee meeting on Tuesday that could recommend changes to production quotas when all the ministers meet on Nov. 30 and Dec. 1.

However, the speedy recovery of oil production in OPEC member Libya back to above 1.2 million bpd presents a challenge to OPEC+ cuts, while a slowdown in traffic across Europe and the United States dampened fuel demand recovery hopes this winter.

“European motorway traffic is down almost 50% in recent weeks in some countries (such as France) as lockdown measures are increased,” ANZ analysts said.

People’s movement on highways in the United States was also slowing, based on vehicle mileage data, despite authorities’ reluctance to adopt new curbs, they added.

While fuel demand slows, Baker Hughes data showed that the U.S. oil and natural gas rig count rose last week to its highest since May as producers, spurred by higher crude prices, return to the wellpad.

ANZ analysts expect the oil surplus to increase to between 1.5 million and 3 million bpd in the first half next year, with a vaccine only boosting demand in the second half.

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Earlier:

OIL PRICE: ABOVE $43
2020, November, 13, 13:35:00
OIL PRICE: NEAR $43
Brent was down 51 cents, or 1.2%, at $43.02 a barrel. WTI fell 66 cents, or 1.6%, to $40.46 a barrel.
OIL PRICE: ABOVE $43
2020, November, 13, 13:25:00
OPEC+ RUSSIA REDUCING
Saudi Arabia and Russia, leaders of the 23-nation coalition, have already indicated publicly that they are thinking twice about easing production cuts in January as the resurgent pandemic hits fuel demand.
OIL PRICE: ABOVE $43
2020, November, 13, 13:20:00
U.S. OIL INVENTORIES UP 4.3 MB TO 488.7 MB
U.S. commercial crude oil inventories increased by 4.3 million barrels to 488.7 million barrels
OIL PRICE: ABOVE $43
2020, November, 11, 14:55:00
OIL PRICE: BELOW $45
Brent rose $1.17, or 2.7%, to $44.78 a barrel. WTI added $1.17 cents, or 2.8%, to $42.53 a barrel.
OIL PRICE: ABOVE $43
2020, November, 11, 14:50:00
OIL PRICES 2020-21: $40 - $47
EIA forecasts Brent crude oil prices will average $47/b in 2021.
OIL PRICE: ABOVE $43
2020, November, 11, 14:30:00
OPEC+ IRAQ, SAUDI ARABIA
Saudi Arabia, Iraq "stressed full commitment to all decisions that have been agreed upon, in a manner that guarantees reaching fair and appropriate oil prices for exporters and consumers in the global oil market," the statement said.
OIL PRICE: ABOVE $43
2020, November, 10, 11:30:00
RUSSIA IS RESPONSIBLE PLAYER
"In any case, Russia is a responsible player on the energy market and that's something which governs our decisions and our thinking," Sorokin said, during the ADIPEC virtual conference Nov. 9.
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Tags: OIL, PRICE, BRENT, WTI