Oil prices log 3rd straight gain ahead of inventory data

“While adherence to (OPEC) cutbacks could be quite high initially, we will be surprised by compliance much above 60 percent by the end of the first quarter as (U.S.) shale responds to a higher price environment”, Ritterbusch said. First, it is unclear whether the Opec will be able to stick to the plan and not exceed its self-imposed production quota.

Hedge funds raised the number of bullish long positions betting on a rise in oil prices by 148 million barrels in the course of four weeks.

The collective action helped push prices to a new 2016 high above $53 per barrel. And oil and gas companies in a recovering market may really need to add more jobs after having cut thousands of jobs over the past two years. A decision by the U.S.

The EIA estimates that United States gasoline consumption will average 9,310,000 bpd in 2016 and 9,370,000 bpd in 2017.

The fields have the potential to add 175,000 barrels a day to Libya’s output within a month, the National Oil Co. said, and up to 270,000 barrels a day early next year. Analysts polled by Reuters expected USA crude oil inventories to show a draw of 2.4 million barrels in the week to December 16.

World oil prices are rising Dec.21 after the American Petroleum Institute (API) released its report on a sharp decline in USA crude stocks, according to the trading data. From 2000 to 2013, USA exports rarely surpassed 100,000 barrels per day.

The world’s top exporter shipped 7.636 million barrels per day in October, down from 7.812 million bpd in September, according to data from the Joint Organizations Data Initiative.

He said it was fortunate that Malaysia reduced its dependence on the oil receipts when it diversified the economy which led the contribution of the oil sector to drop from 41 per cent to 14 per cent within seven years.

Overall, India imported an average 4.28 million bpd of crude in the January-November period of 2016, up 7.6 percent from 3.98 million bpd a year ago.

Some experts have also indicated Latin American countries, especially Mexico and Venezuela, may have the biggest gains from OPEC’s reduction, not American markets.