© Reuters. FILE PHOTO: A crude oil pump in the Permian Basin of Love in County is seen behind the jack
By Florence Tan
SINGHPUR (Reuters) – Oil prices climbed on Monday, with some losses expected from the previous session as OPEC + would curb current production so that concerns over weak fuel demand due to increased infection of coronovirus and higher production in Libya.
The figures showing rebound in the world’s second and third largest economies, China and Japan, supported prices as well as the figures that Chinese refineries processed the highest ever in October on a daily basis. .
Brent crude futures () for January rose 54 cents, or 1.3%, to $ 43.32 a barrel by 0723 GMT, while US West Texas Intermediate crude for December rose 63 cents, or 1.6%, to $ 40.76 a barrel.
“Fundamentally China’s numbers support why oil prices can keep at these levels,” OBCBC economist Howie Lee said.
Both contracts rose more than 8% last week on the expectation of a vaccine for COVID-19 and the Organization of Petroleum Exporting Countries (OPEC) and its partners, including Russia, maintained lower production the following year to support prices.
The group, also known as OPEC +, is cutting production by around 7.7 million barrels a day, with a compliance rate of 101% in October, and had plans to increase production by 2 million bpd from January.
OPEC + is set to hold a ministerial committee meeting on Tuesday that can recommend changes to the production quota to be met on November 30 and December 1 to all quota ministers.
However, the rapid recovery of oil production in OPEC member Libya above 1.2 million bpd presents a challenge for OPEC + cuts, while a drop in fuel demand due to a slowdown in traffic across Europe and the United States this winter. are supposed to.
“European motorway traffic in some countries (such as France) is down by about 50% in recent weeks,” said ANZ.
People movement on highways in the United States was slow, based on vehicle mileage figures, despite officials’ reluctance to adopt the new curse, he said.
While fuel demand slows, Baker Hughes data showed that US oil and rig counts hit the highest level since May last week, as producers, from higher crude oil prices, into wells Are back
ANZ analysts expect the oil surplus to increase between 1.5 million and 3 million bpd in the first half of next year, with one vaccine only boosting demand in the second half.
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