Oil rises in thin trade, but swelling U.S. output caps rally

"In OPEC's most recent monthly oil market report the production data for January shows conformity from participating OPEC nations above 90%", Barkindo said. If maintained it would nearly neutralize the cuts seen from Opec so the coming reports will be watched closely to see it this was a one off or a new trend. In September, OPEC agreed in principle to cut oil production in an effort to drive prices back up.

Despite signs that OPEC's agreement is holding, inventory levels are still very high in many parts of the world.

Similarly, price of each barrel of Iranian light and heavy crude oil also experienced a drop in the dealings leading to February 10, 2017.

The report said the UAE has been the third most-valuable market for hydrocarbons projects, spending $35.1 billion.

Let us take a look at the current oil market status through a number of charts.

"Assuming the United States oil rig count stays at the current level, we estimate United States oil production would increase 405,000 [barrels per day] between the fourth quarter of 2017 and the fourth quarter of 2016 across the Permian, Eagle Ford, Bakken and Niobrara shale plays", Goldman Sachs said in a research note.

Since OPEC agreed to cut oil production on November 30, oil prices have soared 17%. Meanwhile, hedge funds raised net-long positions on West Texas Intermediate to a record, according to Commodity Futures Trading Commission data.

The U.S. market will be closed on Monday for the Presidents Day holiday.

On the fundamental front, we got word that OPEC is looking to step up its compliance with the late-November supply cut accord.

My colleague Kim Cramer Larsson highlighted in this update earlier how WTI crude oil is attempting to break out of the narrowing range we have witnessed during the past couple of months.

Oil prices rose after the comments, trading above $57 a barrel in London.

In April, at least 1 million barrels of the heavy crude Mars, pumped from the U.S. Gulf of Mexico, are expected to land in China's Shandong province and 1 million barrels of a second unidentified heavy grade will arrive in China, trade and shipping sources said last week.

FXTM research analyst Lukman Otunuga opined that while oil prices could edge higher amid the supply cut optimism, the concealed concerns of U.S. shale boosting oil production and negatively impacting Opec's efforts could create some headwinds in the future. Nigeria's Mohammed Barkindo is the Secretary General of the OPEC.

For this reason, Francisco Blanch says he expects limited OPEC oil output growth over the next 5 years.

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