Riding on optimism that non-OPEC producers would agree to cut output following a cartel agreement to limit production, Oil prices extended gains for a second session running on Friday.
Seeking the help from non-OPEC oil producing countries in curbing a global glut, the Organization of the Petroleum Exporting Countries (OPEC) will meet non-OPEC nations in Vienna on Saturday. Armed with proposals for its own reduction, it will come to the Austrian capital, Azerbaijan has said.
After rising 1.7 percent on Thursday, brent crude for February delivery LCOc1 was up 12 cents at $54.01 a barrel. The contract hit its highest since July 2015 at $55.33 on Monday. U.S. crude for January delivery CLc1 was up 32 cents at $51.16 a barrel. Both contracts have lost nearly 1 percent so far this week.
Denoting half of the reduction in production that OPEC is meeting, the oil cartel wants that the non-OPEC oil producing countries also lower their output by the 600,000 bpd. And t cater to this appeal by OPEC, Russia has said it would cut 300,000 barrels per day. This leaves the rest of the propose cut for the non-OPec countries to be pledge to be cut by the rest of non-OPEC producers.
Kazakh Energy Minister Kanat Bozumbayev said on Friday at at the talks between OPEC and non-OPEC producers in Vienna, Kazakhstan may offer to freeze its oil output at last month's level.
"There are hopes for deeper cuts as non-OPEC nations are set to cooperate in curbing production," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting.
"But it is still uncertain whether their cuts would reach 600,000 bpd, which is providing limited support to oil gains."
Despite doubts over whether the amount was enough, crude future prices were bolstered as OPEC last week agreed to slash production by 1.2 million bpd in the first half of 2017.
Despite OPEC's commitments to cut output as they look to defend market share in the fastest growing region for oil demand, refinery sources were quoted in the media as saying that Saudi Arabia and Iraq will supply full contracted volumes of crude to Asia in January.
To decide on strategy for the oil market, a call for a summit of heads of state from OPEC and non-OPEC countries in the first quarter of next year has been given by Venezuelan President Nicolas Maduro who said this on Thursday, adding that he had agreed with Iran on this call.
Consultancy Wood Mackenzie said that following the freezing of production decisions, global spending on oil and gas exploration in 2017 could fall below this year's $40 billion.
The market is waiting on weekly data on U.S. oil rig counts issued by oil services firm Baker Hughes later on Friday.
(Source:www.reuters.com)
Seeking the help from non-OPEC oil producing countries in curbing a global glut, the Organization of the Petroleum Exporting Countries (OPEC) will meet non-OPEC nations in Vienna on Saturday. Armed with proposals for its own reduction, it will come to the Austrian capital, Azerbaijan has said.
After rising 1.7 percent on Thursday, brent crude for February delivery LCOc1 was up 12 cents at $54.01 a barrel. The contract hit its highest since July 2015 at $55.33 on Monday. U.S. crude for January delivery CLc1 was up 32 cents at $51.16 a barrel. Both contracts have lost nearly 1 percent so far this week.
Denoting half of the reduction in production that OPEC is meeting, the oil cartel wants that the non-OPEC oil producing countries also lower their output by the 600,000 bpd. And t cater to this appeal by OPEC, Russia has said it would cut 300,000 barrels per day. This leaves the rest of the propose cut for the non-OPec countries to be pledge to be cut by the rest of non-OPEC producers.
Kazakh Energy Minister Kanat Bozumbayev said on Friday at at the talks between OPEC and non-OPEC producers in Vienna, Kazakhstan may offer to freeze its oil output at last month's level.
"There are hopes for deeper cuts as non-OPEC nations are set to cooperate in curbing production," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting.
"But it is still uncertain whether their cuts would reach 600,000 bpd, which is providing limited support to oil gains."
Despite doubts over whether the amount was enough, crude future prices were bolstered as OPEC last week agreed to slash production by 1.2 million bpd in the first half of 2017.
Despite OPEC's commitments to cut output as they look to defend market share in the fastest growing region for oil demand, refinery sources were quoted in the media as saying that Saudi Arabia and Iraq will supply full contracted volumes of crude to Asia in January.
To decide on strategy for the oil market, a call for a summit of heads of state from OPEC and non-OPEC countries in the first quarter of next year has been given by Venezuelan President Nicolas Maduro who said this on Thursday, adding that he had agreed with Iran on this call.
Consultancy Wood Mackenzie said that following the freezing of production decisions, global spending on oil and gas exploration in 2017 could fall below this year's $40 billion.
The market is waiting on weekly data on U.S. oil rig counts issued by oil services firm Baker Hughes later on Friday.
(Source:www.reuters.com)
