Oil prices rose in Europe on Wednesday, extending for the third day in a row, supported by expectations that ongoing meetings and discussions between OPEC producers and independent producers would extend the global production cut-off agreement after March 2018, overshadowing the impact of higher than expected US crude inventories According to the American Petroleum Institute.
48.60 a barrel from the opening level of 48.33, USD recording a high of 48.62 USD and a low of 48.11 USD .
Brent crude rose to 54.60 USD a barrel from the opening level of 54.26 USD , recording a high of 54.62 USD and a low of 54.02 USD .
US crude oil for October delivery closed 0.5 % higher in the second daily gain in a row, and Brent crude futures rose by 0.7 % after OPEC confirmed in its monthly report that demand for its oil will rise in 2018.
The Organization of Petroleum Exporting Countries (OPEC) raised expectations of demand for its oil next year and pointed to a narrowing of the gap between supply and demand in the markets, indicating the positive impact of the agreement to reduce global production.
Over the last two weeks, meetings and discussions between OPEC producers and independent producers have continued to discuss the extension of the global production cut off after March 2018, aimed at balancing the market and supporting prices. The commissioners lead Russia and Saudi Arabia, the world’s top oil producers.
It is expected that these commissions will succeed in extending the agreement, and some informed sources said that the new extension is expected to be for another six months, with the implementation of the agreement to be completed in September 2018.
OPEC will meet formally in November next year to decide on extending the agreement. If the extension is difficult, an extraordinary meeting is expected in mid March 2018 for this matter, said Kuwaiti Oil Minister Essam al Marzouq on Wednesday. Joint press conference with his Venezuelan counterpart in Kuwait.
In the United States, the Petroleum Institute yesterday announced a rise of 6.2 million barrels of crude oil in the country for the week ending September 8, and experts expected a rise of 3.2 million barrels, the second weekly increase in a row.
Traders are looking ahead to the official data released by the US Energy Information Administration, which is expected to rise by 4.1 million barrels.
According to energy experts, the current increase in US crude stocks is exceptional as a result of Hurricane Harvey, which hit the Gulf of Mexico recently and seriously damaged the US oil industry. It stopped about a quarter of the country’s refining capacity, shut down major supply pipelines and forced the government to withdraw an estimated 1 million barrels Of strategic oil stocks for the first time in five years.
United states refineries have begun to return to normal operating levels, and Motiva Interpress, the largest refinery in the United States, began production on Monday after a two week closing