Saudi Arabia, UAE, Venezuela open to extending oil production cuts

Saudi Arabia, UAE, Venezuela open to extending oil production cuts

WTI oil prices dipped sharply during the NY session on Monday with a slide to near $47.0 p/b before a quick rebound to just above $48.00 in choppy trading.

U.S. West Texas Intermediate (WTI) CLc1 was up 16 cents or 0.3 percent to $48.23 a barrel.

Gold is retreating as the safe-haven demand fades.

Brent crude, the global oil benchmark, rose 0.50% to $54.11 a barrel on London's ICE Futures exchange.

The deal was extended for another nine months in May 2017.

The firm said "given the only modest impact Harvey had on oil production, the combined demand loss generated by these two hurricanes will be a bearish shock for global oil balances in September".




OPEC's crude oil production declined in August thanks to Saudi Arabia cutting more from its production, a person familiar with the figures told Bloomberg, adding the information came from four of six secondary sources that track the production rates of the cartel's members.

Under the terms of the original deal to reduce production, reached in November 2016, the Organisation for the Petroleum Exporting Countries and other large producers like Russian Federation agreed to take roughly 1.8m barrels a day of supplies off the market, in order to curb an already burgeoning surplus. Refineries are restarting in Texas.

Among persistent glut worries, Saudi Arabian Energy Minister Khalid al-Falih had discussions with his Venezuelan and Kazakh counterparts about the chances of extending supply cuts through March 2018.

USA crude stockpiles likely rose by 4.82 million barrels last week, according to a Bloomberg survey ahead of Energy Information Administration data released Wednesday. "If you look at flat price, it has gone nowhere over the last month and a half to two months". The American Petroleum Institute releases its own weekly inventory report late Tuesday.

Kazakhstan has said it needs to adjust the terms of the deal as it expects to boost output later this year thanks to the giant Kashagan field.

However, Goldman said its prediction for increased fuel demand could be upset if Hurricane Irma were to make landfall in Florida where it would not be felt so much on the sparse oil infrastructure than on fuel demand. Buckeye Partners LP plans to resume limited service Wednesday at its Florida terminals and refined products pipeline system, according to a statement.

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