Oil rises on expectations of data on oil reserves in U.S.
By Sara Israfilbayova
World oil prices rise on Tuesday morning on the expectations of traders of data on statistics on oil reserves in the U.S.
Brent crude futures are up 0.03 percent at $62.47 a barrel, while U.S. West Texas Intermediate (WTI) crude futures are up 0.1 percent at $57.53 per barrel, RIA Novosti reported.
Market participants expect statistics on oil reserves in the U.S. In particular, the American Petroleum Institute (API) will publish its data on December 5, and the Energy Information Administration of the US Energy Ministry (EIA) - on December 6.
“Now everyone will be watching the data on the U.S. crude stocks that will be published today and tomorrow,” Reuters quoted Jeffrey Halley, a senior market analyst at OANDA.
At the same time, traders continue to win back the decision to extend the agreement to reduce OPEC + oil production by the end of next year, which was adopted last week.
OPEC and a number of non-member producers, including Russia, agreed on November 30 to extend the agreement on limiting raw materials extraction for another nine months, hoping ultimately to cope with oversupply and bring the market to balance.
As calculations showed, OPEC oil production in November fell by 300,000 barrels per day to 32.48 million barrels per day, which was the lowest level since May.
Analysts at Goldman Sachs, in turn, noted that the commitment of Saudi Arabia and Russia to the global pact is high, and therefore increased the forecast of spot prices for the North Sea blend Brent and the U.S. benchmark WTI to $62 per barrel and $57.50 per barrel in 2018, respectively.
OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.
Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from January 1, 2017.
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