We're winning battle to curb oil glut, says OPEC

We're winning battle to curb oil glut, says OPEC

We're winning battle to curb oil glut, says OPEC

Brent, the global benchmark for crude, jumped $2, or 3.6%, to $58.86 a barrel, its highest since July 2015 by 1:45 p.m. EDT.

Libya's oil output is rising again after disruptions ended at its biggest field, with production reaching about 950,000 barrels a day.

"Fifty-dollar WTI is not high enough to support a material uptick in oilsands investments", said Randy Ollenberger, managing director of oil and gas equity research for BMO Capital Markets.

"The market is apprehensive about pushing [Brent] to $60 a barrel", said Geordie Wilkes, a research analyst at brokerage Sucden Financial Ltd. Mr. Wilkes said some investors worry that sending crude prices too high could incentivize an uptick in US shale production and exacerbate a global supply glut.

West Texas Intermediate crude remained about $4 below its 2017 high, but topped $51 a barrel for the first time in four months.

The committee can make policy recommendations for the wider group of OPEC and non-OPEC producers, which meets in November.

Demand is healthy and "the punchline is Opec compliance has been pretty strong", Matt Sallee, who helps manage US$16 billion (RM67.3 billion) in oil-related assets at Tortoise Capital Advisors LLC, said by telephone.

However, not everyone agrees that there is further room to run for oil prices, and just because oil has rallied in the past few weeks, does not mean that greater price increases are a foregone conclusion.

In 2018, non-OPEC supply from USA shale will increase, and the current deadline for OPEC's cuts-March 2018-also points to higher OPEC supply when the production pact ends, if it ends at the end of Q1 2018. About 28 percent polled did not have a material impact from the storm, which shuttered much of the U.S. Gulf Coast's energy production and refining capacity.

Jim Ritterbusch of Ritterbusch & Associates in Chicago said delaying a decision allows producers "to leave some arrows in their quiver to throw something bullish at the market at their November meeting" if necessary.

Top oil executives gathered at the S&P Global Platts APPEC conference in Singapore said strong oil demand this year was accelerating market rebalancing and helping inventory drawdowns.

On Friday, the Organisation of the Petroleum Exporting Countries and other producers will meet in Vienna to discuss the progress of their deal to limit output.

Iran expects to maintain overall crude and condensate exports at around 2.6 million bpd for the rest of 2017, a senior official from the country's state oil company said.

"The market anticipates that OPEC and non-OPEC (exporters) are going to continue with their production cuts through 2018", president of Lipow Oil Associates, Andy Lipow, said.

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