Oil Range Bound Ahead of OPEC Meeting

Oil Range Bound Ahead of OPEC Meeting

The Organization of the Petroleum Exporting Countries and 10 producers outside the cartel, including Russian Federation, first agreed late past year to cap production at around 1.8 million barrels a day lower than peak October 2016 levels to help ease a global glut of supplies and balance the market.

The minister noted that although Nigeria was not a member of the five-nation Joint Ministerial Monitoring Committee, he had gladly accepted the invitation of the co-chairs of the committee and the OPEC conference president to attend its meeting.

Kachikwu assured that Nigeria would be bound by any agreements and resolutions collectively made by OPEC, including the need to cap its oil production when it has stabilised at 1.8 million bpd. He added that "the market is now evidently well on its way towards rebalancing".

Brent crude, the worldwide benchmark, closed at the highest level since February on Thursday, an increase of more than 25 percent since June, as the world's bloated fuel inventories shrink.

"I feel very, very confident that the market is starting to tell us that more of that surplus will be eliminated by the end of this year and the emerging backwardation is going to speed up that process even further in drawing those barrels out of storage", King said.

Oil prices settled up 2% on Wednesday as traders and investors ignored a build in USA crude stockpiles from last week to focus on the likelihood of OPEC extending crude production cuts when it meets later this week to assess price support measures.

Brent crude LCOc1 rose 43 cents, or 0.8 percent, to settle at $56.86, a penny shy of the session high which was also the highest since March.

Nifty slips from record in choppy trade ahead of US Fed meet
Foreign portfolio investors (FPIs) remained net sellers in the past several sessions, offloading equities worth Rs 1,185.40 crore. Collectively these six stocks washed off about 112 points while HDFC , Dr Reddy's, TCS , Sun Pharma , Cipla trimmed the losses.

The market for producers has improved since the last time ministers from the Organization of Petroleum Exporting Countries and their allies met, said Kuwaiti Oil Minister Issam Almarzooq.

"The bull run in the oil market is running out of steam as unease builds ahead of tomorrow's OPEC/non-OPEC meeting", said Stephen Brennock, analyst at London brokerage PVM Oil Associates.

Opec left its other pressing issue - rising production from Nigeria and Libya, which are exempt from cutting - for a later date.

Minister of Petroleum Bijan Zangeneh on Thursday said Iran had a major quarrel with non-OPEC producers over its push to win back the market share but it did not back off in the face of "many bad things which were said". Compliance to production cuts reached new highs of 110% in August, which has helped ease inventory excess.

U.S. crude inventories rose for a third straight week, by 4.6 million barrels in the week ending September 15, the Energy Information Administration said Wednesday.

At its meeting which held in Vienna, Austria, the Committee approved Nigeria's exemption extension, stating that it should be sustained until the country's oil production stabilises. Obviously we will not produce that.

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