The fall in oil prices was a record for 10 years

Gulf OPEC members covered output gap left by Iran on Trump’s call

Opec and non-Opec oil producers will hold a ministerial meeting December 6-7.

At this time, the momentary truce between the United States and China is a positive for crude oil prices.

Putin earlier greeted other leaders in the same way, Peskov said, declining to give further details.

On Wednesday, oil prices dipped as the U.S. Energy Information Administration (EIA) recorded a continuous rise in U.S. crude inventories, exceeding market expectations. Separately, the Energy Information Administration said oil USA field production of oil fell to 344 million barrels in September from almost 352 million in August.

"I explained to (Suarez) the results of the OPEC+ agreement on the stability of oil markets, which serves the interests of producers, consumers and investors and supports the global economy", he wrote. The cable broadcaster reports that US crude oil prices have crashed nearly 26 per cent from their peak in October as fear of a shortfall in supply has turned into talk of a glut.

Meanwhile, West Texas Intermediate received an additional boost from an announcement by Alberta's Premier, Rachel Notley, that the province will cut crude oil production by over 300,000 bpd in order to clear excess supply in storage and arrest the decline in prices.

The Organization of the Petroleum Exporting Countries meets on December 6 to decide output policy.

American drillers pumped 11.475 million barrels a day, the U.S. Energy Information Administration said, eclipsing Russian Federation for a second month as the world's biggest producer.

Russian President Vladimir Putin said Saturday he and Crown Prince Mohammed bin Salman "have agreed to extend our agreement" to limit production as prices slump on global markets.

In the meantime, US estimated oil output has increased by 11.7 Million bpd. At the opening of Brent was trading at 59,73 per barrel, up 18 cents below the closing level ($59,91). In fact, the price differential between Canadian oil and the USA benchmark oil hit a record high of $50 per month last month.

With drilling activity still high, most analysts expect USA oil production to rise further in 2019.

Meanwhile, the number of active drilling rigs in the United States decreased by three to 1,076 in the week ending November 30.

"Markets will be watching how OPEC will grapple with multiple threats to their efforts to keep prices buoyant", says Peter Kiernan, a lead energy analyst at forecasting and advisory services provider Economist Intelligence Unit. “Even if production is cut, concerns about slowing demand could still weigh on prices.”.

Crude oil and other cycle-sensitive assets are likely to experience higher volatility as the meeting approaches and markets become more tense.

Related:

Comments

Latest news

Understrength Manchester City racks up sixth straight win in EPL
Manchester City's Raheem Sterling shoots at goal against AFC Bournemouth in Etihad Stadium, Manchester, December 1, 2018. Raheem Sterling (right) putting Manchester City back ahead, 2-1, after 57 minutes in the Premier League game yesterday.

US, China declare halt to new tariffs
The leaders finished their talks after about 2-1/2 hours and Trump departed for his scheduled flight back to Washington. Xi replied referencing the men's "personal friendship" and that they must cooperate for "world peace and prosperity".

TV Brexit debate between May and Corbyn 'dereliction of duty by BBC'
I think we should remember that we gave the vote to the British people as to whether or not to leave the EU. He replied: "I don't see why it should".

Saudi Crown Prince meets Argentina's President on the sidelines of G20 summit
Mattis and Pompeo urged senators to support the USA involvement in the war in Yemen, including assistance to Saudi Arabia. The clip was partially inaudible and the context of the exchange was not entirely clear.

Other news