Friday, 13 October 2017 10:31 WIB | ENERGY |
Oil is heading for the biggest weekly gain since mid-September after U.S. crude stockpiles extended declines and as the head of OPEC said a market re-balancing is progressing.
Futures added 0.6 percent in New York and are up 3.3 percent for the week. U.S. crude inventories dropped by 2.75 million barrels last week, while oil output fell for the first time in five weeks, according to government data on Thursday. OPEC expects efforts to clear the global glut with its allies including Russia to succeed by the end of the third quarter of next year, according to people familiar with the group™s internal forecasts.
Oil has rebounded from the biggest weekly loss since May on signs that output cuts led by the Organization of Petroleum Exporting Countries are draining a surplus. The agreement is due to expire by the end of March. The International Energy Agency predicts progress on clearing the glut may stall next year, while OPEC Secretary-General Mohammad Barkindo said Sunday that further steps might be needed to sustain the recovery into 2018.
West Texas Intermediate for November delivery was at $50.88 a barrel on the New York Mercantile Exchange, up 28 cents, at 10:42 a.m. in Hong Kong. Total volume traded was about 40 percent below the 100-day average. Prices slid 70 cents to $50.60 on Thursday, dropping for the first time in four sessions.
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Brent for December settlement was at $56.51 a barrel on the London-based ICE Futures Europe exchange, up 26 cents. Prices are up 1.6 percent this week. The global benchmark crude traded at a premium of $5.31 to December WTI.
U.S. crude production dropped by 81,000 barrels a day to 9.48 million a day, according to the Energy Information Administration. Crude supplies at Cushing, Oklahoma, rose for a seventh week to 63.8 million, while gasoline inventories expanded by 2.49 million barrels to 221.4 million.
Source : Bloomberg