Oman oil minister - confident of agreement this month to extend output cuts

Oman oil minister - confident of agreement this month to extend output cuts

Oman oil minister - confident of agreement this month to extend output cuts

Despite the cautious sentiment, traders said oil prices were unlikely to fall far, largely due to supply restrictions led by the Organization of the Petroleum Exporting Countries and Russian Federation, which have helped reduce excess stockpiles.

In a monthly report, the Paris-based agency cut its oil demand forecast by 100,000 bpd for this year and next, to an estimated 1.5 million bpd in 2017 and 1.3 million bpd in 2018.

The price of Iran's light crude oil in the week ended on November 3 rose $2.59 to stand at $60.04 per barrel, IRIB reported on Sunday.

Analysts said investors believe the geopolitical tension will disrupt oil production in the region, so to offset rising US output.

The cartel is said to be leaning toward a nine-month extension of the cuts to the end of 2018, and the market is already pricing this in to some extent, but in recent weeks there has been speculation as to whether the cartel and its allies will decide and communicate a firm decision for extension at the meeting at the end of this month. "We are not going to meet in that quarter unless it is extraordinary", Mazroui said at an energy industry conference.

Bahrain's oil minister, Sheikh Mohammed bin Khalifa al-Khalifa, said on Tuesday he sees no reason why the supply cut agreement between oil producing countries should not be extended on November 30.

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Morse's remarks came just hours after Opec Secretary-General Mohammad Barkindo gave assurances in Abu Dhabi that the worldwide oil market is re-balancing at a quickening pace and production cuts are the "only viable option" to restore stability. According to data, the U.S. bought just 525,000 barrels a day of Saudi crude in October, the lowest since May 1987 and down from 1.5 million barrels a day a decade ago.

"The recent price support, namely the tension in the Middle East has been swept aside as rising rig counts and United States shale output (are) in the focus of traders", PVM Oil Associates analyst Tamas Varga said.

OPEC has sought to push stocks to the five-year average.

Brent crude futures were down 17 cents at $63.35 a barrel, having gained 14% so far this month.

Tensions in the Middle East have raised the prospect of disruptions, but it was unclear whether a strong quake that hit Iran and Iraq on Sunday had affected the region's oil production.

Bahrain said Iran was behind an explosion in its main oil pipeline.

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