Oil prices edged up on Monday morning in Asia as de facto OPEC leader Saudi Arabia compels the organization and its allies to slash distribution to increase oil prices following a sell off before this month. WTI Futures crude oil for January delivery rose 1.15% to $57.33 a barrel in 10: 50PM ET on the NY Mercantile Exchange, while Brent oil futures for January delivery also inched up 0.66% to $67.44 per barrel on London’s Intercontinental Exchange. As oil prices slid to the sixth consecutive week, major crude exporter Saudi Arabia is likely push OPEC and its allies to cut production in December from one million to 1.4 million barrels daily to appeal to a downturn in worldwide demand.
The ministers are set to meet in December. 6 in Vienna, Austria to establish their production policy for the initial 50% of 2019, various reports showed. The market radar remains waiting for OPEC+ to provide reduction number, Stephen Innes, head of trading for Asia Pacific at futures Oanda, told Reuters. Another crude producer, Russia, may not join the output in OPEC, according to Reuters, citing two high ranking officials. They were quoted stating that lowering output isn’t the right systematic approach. Elsewhere distribution In North America is rising. According to energy services company Baker Hughes, the U.S. Added 2 oil rigs as of Nov.
16 to 888up 150 from a year ago, while Canada added one rig to 118, an increase from 109 last year. U.S. Crude production continued to scale, recording 11.7 million bpd as of Nov. 9, in accordance with the Energy Information Administration. The organization is supposed to release production information on Wednesday. On the demand side, the world’s third biggest economics, Japan, reported on Monday 7.7% drop in oil import in October of this year.
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