Oil Stable After OPEC Suggests Extraordinary Measures

Why Are Oil Prices Not Popping Out Of 1 Year Long Range

Bloomberg reported that the Brent benchmark had erased earlier declines to trade marginally higher at $55.62 a barrel, after the news of the Saudi oil allocations cuts.

North American shale drillers have helped production soar by almost 10% in the USA this year, despite OPEC and some other producers, including Russian Federation, cutting supplies to prop up prices.

U.S. West Texas Intermediate (WTI) crude futures CLc1 rose 7 cents, or 0.1 percent, to $50.99 a barrel.

Oil prices are now trading flat, after the Organisation of Petroleum Exporting Countries (OPEC) stated that the market is gradually tightening, after years of oversupply.

OPEC and other oil producers may need to take "some extraordinary measures" next year to rebalance the oil market, the OPEC secretary-general said on Sunday.

But Mr Barkindo said he was not anxious about the rise in USA shale oil and gas output. "I don't think there are many losers out there". "Between the first half and second half this year, demand growth is nearly about 2 million barrels (per day), which is very robust", he said.

Opec said it pumped 32.75 million bpd in September, up about 89,000 bpd from August.

The OPEC agreement with Russian Federation and 10 other producers to take off 1.8 million bpd from the global oil market was originally supposed to last for six months, but in May this year the partners chose to extend it until the end of March 2018.

After settlement, the American Petroleum Institute will release weekly U.S. fuel inventory data, and the U.S. Department of Energy reports official data on Thursday.

He also said Nigeria and Libya, who were exempted from the pact, "are making progress towards full recovery" of production, after which they could join the OPEC-led agreement. He said the picture was "not clear because you still have hurricane related news".

Iraqi government forces and Iranian-trained Iraqi paramilitaries are "preparing a major attack" on Kurdish forces in the oil-rich region of Kirkuk and near Mosul in northern Iraq, the Kurdistan Regional Government (KRG) said.

News of the outage sent US gasoline margins up as much as 4.4 percent to a session high of $16.62 a barrel.

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