Oil prices jumped more than 2%, supported by the intentions of Saudi Arabia to cut oil exports in November, as well as comments from OPEC and the trading companies that the market regains balance after years of oversupply.
Saudi Arabia announced in November plans to reduce shipments of crude oil 560 000 barrels per day. This step is another confirmation of the fact that OPEC members remain committed to the Pact on the reduction suggestions.
“Oil prices jumped in response to news that Saudi Arabia plans to cut oil supplies to customers in November,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt.
Recall that the Organization of countries-exporters of oil, Russia and other producers who are not members, have agreed to cut production by about 1.8 million barrels a day by March next year to get rid of excess reserves and raise oil prices.
OPEC is increasingly convinced that the market quickly pereplaniruemoe, helped by a deal to cut production and a stronger-than-expected growth in global demand.
Executive Director of Gunvor torbjörn törnqvist also said that the market was pereplanirovana, citing falling reserves and production of oil.
This year OPEC has made a record commitment of its transactions to reduce the supply and is considering extending the deal after the expiration of its term in March 2018. Some analysts are concerned that the recovery in prices may encourage producers to increase production.
Meanwhile, additional supports prices situation in the US where 85% of oil production in the Gulf of Mexico or 1.49 million barrels per day are offline after hurricane Nate.
The price of November futures on U.S. light crude oil WTI (Light Sweet Crude Oil) increased to 50.91 per barrel on the new York Mercantile exchange.
The price of December futures for North sea petroleum mix of mark Brent rose to 56.80 a barrel on London’s ICE Futures Europe exchange.
Vitali Nesterenko, an analyst at TeleTrade