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Oil prices rise 1.5% after Saudi Arabia announces supply cut in December

14 November 2018

But the USA president - facing pressure after Republican losses in the midterm elections - is eager to tamp down threats to the economy, including higher gas prices. Initial volumes of 300,000-350,000 bpd are about 100,000 bpd higher than Plains All American's previous estimate.

But the producer nations eased the output cuts in June after signs of a tight market and higher prices, allowing hundreds of thousands of extra barrels into the market.

The sanctions lifted supply concerns and concerns over economic slowdown, which may curb fuel demand.

Output from the world's top oil producers Russian Federation, the United States and Saudi Arabia has risen by 1.05 million bpd in the last three months, based on official output figures.

Taiwan was flat, Seoul slid 0.3% and Sydney closed up 0.3%.

The bank added that it expected U.S. crude production, already at a record 11.6-million barrels a day, to break through 12-million barrels a day in 2019, making the United States "energy independent".

Trump's efforts to influence oil production threatens to further strain relations between the two historic allies, even as his administration continues to describe the Saudis as a crucial partner in a shared bid to counter Iranian influence in the Middle East.

US sanctions against Iran had removed less oil than expected from the market, Falih said.

Oil prices rose by more than 1 per cent yesterday after some of the world's largest producers, grappling with weakened demand, prepared for a sharp cut in output.

On Wednesday, oil prices decreased as US crude inventories recorded a seventh consecutive increase. Brent also traded lower in post-settlement activity, dropping $1.13 to $69.05 a barrel.

US gasoline inventories increased by 1.9 million barrels, while distillate fuel inventories decreased by 3.5 million barrels, EIA said.

Friday marked the 10th consecutive day crude oil prices fell.

The OPEC said later that its member countries are ready to meet global oil market needs in case of any politically-motivated fall in supply, and "maintain their continuous efforts in pursuing a balanced and sustainably stable global oil market". Oil futures in NY had gained as much as 2.4% in London and 1.8% in NY after the Saudi announcement.

According to official statistics, Russia's oil production in October averaged 11.4 million barrels per day, approaching an all-time high.

Venezuela is hoping to steeply raise oil output next year but will respect any new deal if OPEC agrees to reduce output from December, Oil Minister Manuel Quevedo said on Sunday. Also, crude stockpiles increased for seven successive weeks. Barron's Al Root noted that changes in output from the particular world region can have an outsized impact on commodity prices due to the major difference in what it costs to produce oil in the kingdom versus other places in the world. WTI dropped 1 dollar to settle at 60.67 dollars a barrel, while Brent was down 1.42 dollars to close at 70.65 dollars a barrel.

For oil investors, elsewhere would be nice.

Oil prices rise 1.5% after Saudi Arabia announces supply cut in December