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

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

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

World oil demand growth in 2017 is expected to rise by 1.42 million barrels per day (mbpd) after an upward revision of around 50,000 barrels per day (tbpd), according to Opec Monthly Oil Market Report (MOMR).

"We believe that Irma will have a negative impact on oil demand but not on oil production or processing", Goldman Sachs analysts said in a note.

"Over the next two to three weeks, the EIA inventory numbers will be rather sloppy because you have production disrupted, refineries going offline and online", he said.

It comes as global oil supplies fell in August due to both multilateral measures aimed at stemming excess stock and unplanned outages. In August, the IEA has anticipated annual growth would hit 1.5 mb/d, again an increase on July's 1.4 mb/d forecast.

The report showed the cartel pumped 32.76 million barrels a day last month, according to independent sources that monitor OPEC's production.

Brent crude LCOc1 fell 4 cents to $53.80 per barrel, while the US West Texas Intermediate (WTI) crude CLc1 slipped 3 cents to $48.04, reported Reuters. Production rose 0.5% month-over-month but fell 2.8% year-over-year.

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Opec and other producers including Russian Federation pledged to reduce output by about 1.8 million barrels a day through March to trim global oil inventories and buttress prices.

The fall in production was the first in four months and follows hot on the heels of OPEC's recent decision to slow production. This comes as all reporting agencies saw an improvement in OPEC compliance, even OPEC themselves. Oil exports by OPEC were 25.19 million bpd in August, their lowest level since April. Analysts forecast that crude inventories last week rose while products drew down, ahead of The American Petroleum Institute (API) data on Tuesday and the US Department of Energy's Energy Information Administration (EIA) reporton Wednesday. According to the organisation, the supply was hampered by Hurricane Harvey in the U.S., which caused refineries to shut.

Crude inventories increased to 468.2 million barrels, although there was still a year-on-year decline of 2.5%.

Mexico produced 170,000 barrels per day, while it had to produce 100,000 barrels.

OPEC also trimmed forecasts for growth in oil supplies outside the organization next year, by 100,000 bpd, amid lower expectations for Russian Federation and Kazakhstan.

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