Russian oil output rises in October after maintenance at Pacific fields

Marco Green
November 3, 2017

Brent has risen by 37 per cent since its low in 2017 reached last June.

Crude oil futures rose 0.63 per cent to Rs 3,542 per barrel today as speculators raised their bets amid a firm trend overseas.

"Increasingly, the global crude oil marketplace is relying on our deep and liquid NYMEX WTI Crude Oil futures as the de facto global price-setting and risk management benchmark". WTI is about 31% above its 2017 low hit June. Confidence has been fuelled by an effort this year lead by the Organization of the Petroleum Exporting Countries and Russian Federation to hold back about 1.8 million barrels per day (bpd) in oil production to tighten markets.

As a result of e-commerce in London and NY stock exchanges, the world oil prices are rising, Gazeta.ru reports.

Furthermore, global crude inventories, especially in the U.S., have drawn down as oil markets have been slightly undersupplied during the past quarters, although the outlook for next year is uncertain. "Compliance as a whole for OPEC up being rather strong", said Mark Watkins, regional investment manager at US Bank.

While supplies are being withheld, demand is also rising, especially in China, whose roughly nine-million barrels per day of imports have surpassed those of the United States to top the world's crude importer list.

The pact to cut supply runs to March 2018. "What's more, our balance points to the resumption of global stock builds in 2018", said Harry Tchilinguirian of BNP Paribas in a note.

The latest figures show Russian Federation cut its oil output by around 317,000 barrels per day from 11.247 million bpd reached in October 2016, the baseline for the global agreement to reduce oil production.

Other reports by Click Lancashire

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