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


Traders said crude prices were generally well supported, as output cuts led by the Organization of Petroleum Exporting Countries and Russian Federation have contributed to a significant reduction in excess supplies that have dogged markets since 2014.

An extension would prolong the agreement among OPEC, Russia and other oil-producing nations to keep 1.8 million barrels a day off the market through the whole of next year.

His Omani counterpart also voiced confidence there would be an agreement this month.

Despite expectations for uptick in US output, traders remained confident that Opec's output curbs would continue to support upside momentum in crude prices ahead of the upcoming Nov, 30 Opec meeting, at which it's widely expected that Opec will extend its global accord on production cuts beyond March.

OPEC has increased its demand outlook for 2018, saying that the world will need 33.42 million barrels per day of OPEC crude.

Meanwhile, with $2.39 rise from its preceding week, Organization of Petroleum Exporting Countries (OPEC)'s basket price stood at $58.73 per barrel in the said week.

"If current trends continue, inventories are likely to return to the five-year average at some stage in 2018", it said, adding that strong demand had also helped reduce the glut.

OPEC Secretary-General Mohammad Barkindo, speaking at the same event, said participants in the deal were committed to achieving market stability.

On the New York Mercantile Exchange crude futures for December delivery fell 0.05% to $56.73 a barrel, while on London's Intercontinental Exchange, edged up 0.03% to $63.16 a barrel.

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.