Oil stocks to buy ahead of next OPEC meeting

Need for extraordinary measures

OPEC's focus is on to jointly implement the supply adjustments in order to continue to accelerate the destocking to restore stability, Mohammed Barkindo said adding, if the balance is restored between demand and supply of crude oil, it would be in the best interest of the global economy.

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.

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 rose 38 cents, or 0.8 percent, to $51.30 a barrel.

"We urge our friends in the shale basins of North America to take this shared responsibility with all the seriousness it deserves, as one of the key lessons learnt from the current, unique supply-driven cycle", OPEC's Secretary General said.

The world's largest oil producing nation, Saudi Arabia, said on Monday it had cut crude oil allocations for November by 560,000 barrels per day. "I don't think there are many losers out there".

Oil prices have firmed in 2017, but they have not risen as much as some analysts had forecast.

Currently, the EIA expects total US crude oil production to average 9.3 million bpd for 2017 and 9.8 million bpd in 2018, which would mark the highest annual average production in USA history, surpassing the previous record of 9.6 million bpd from 1970.

Investors are in wait-and-see mode ahead of the release of oil-market data from the Organization of the Petroleum Exporting Countries on Wednesday and the International Energy Agency on Thursday.

Rob Haworth, senior investment strategist at U.S. Bank Wealth Management said OPEC and oil bulls were "hoping U.S. producers slow down production and make further progress on inventory cuts".

US crude inventories probably fell for a third straight week, while refined product stockpiles also likely declined, a Reuters poll showed.

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

Related News:



Most liked

Donald Trump won't be state guest as United Kingdom visit downgraded
Mr Farage was disappointed by No. 10's decision to downgrade Mr Trump's state visit to the United Kingdom in 2018. A state visit is still set to go ahead at some point, though no dates have been set in stone just yet.

Joel Embiid OKs five-year, $148M deal with Sixers
The building process saw the 76ers go 28-54 last season after winning fewer than 20 games each of the previous three seasons. Alongside Ben Simmons and Markelle Fultz , Embiid is now the face of a franchise that has shown unbelievable patience.

EPA Administrator Scott Pruitt will end Obama policy regulating greenhouse gas emissions
Scott Pruitt will sign a proposal tomorrow that would eliminate the Obama administration's signature climate change rule, the U.S. Supporters of the Clean Power Plan will be looking for ways to challenge the Trump administration's moves in court.

Spanish Premier Issues New Warning Against Catalan Separatists
Rajoy was forced to apologize on Friday, but many in Catalan say the crackdown has only fueled their desire for independence. On social media, people could be seen booing Catalan police, whose chief is suspected of collusion with separatists.