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.

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