Oil prices climb after IEA report

  • Oil prices climb after IEA report

Oil prices climb after IEA report

As the deal aims to check the oil supply glut that has weighed on crude prices for more than three years, OPEC sees signs of a tighter global market and thus raised its global demand outlook for next year.

Gasoline stockpiles fell 8.4 million barrels for the week, the EIA said - the largest fall on record and due to the impact of Harvey on Gulf Coast refineries.

Members of the Organization of Petroleum Exporting Countries and other producers including Russian Federation have pledged to reduce crude output by about 1.8 million barrels a day through March to trim global oil inventories and buttress prices.

At the Multi Commodity Exchange, crude palm oil for delivery in September month traded higher by Rs 2.90, or 0.53 per cent to Rs 550 per 10 kg in business turnover of 232 lots.

In December 2016, OPEC and 11 countries outside the cartel agreed to withdraw 1.8 million barrels per day from the oil market in the first half of 2017.

Industry and government oil products stocks stood at 1,796.3 million barrels at in July in the 34 countries that make up the Organisation for Economic Cooperation and Development.

October West Texas Intermediate crude for October delivery jumped $US1.07, or 2.2%, to settle at $US49.30 a barrel in NY - the highest finish since August 9.

U.S. crude production rebounded to an average of 9.4 million barrels per day last week from 8.8 million bpd a week earlier, entirely the result of increases in the lower 48 states.

Harvey, which first trampled communities in South Texas at landfall August 25 and then flooded the Greater Houston area as it stalled on the Gulf Coast, caused substantial electricity outages, as power plants and transmission infrastructure were affected by high winds and significant flooding, the Energy Information Administration (EIA) noted Wednesday.

For months, the oil cartel OPEC has anxious about what it should be doing as its plan to restrict its collective crude production (and hopefully kick off a price rebound) was failing.

Meanwhile, the International Energy Agency said in its latest monthly report that the global market is starting to tighten due to robust demand and a drop in output from both the OPEC and other producers.

This week's gains have come despite data showing a big build in USA crude inventories after Hurricane Harvey.

Futures slipped 0.5%in NY after rising 1.2% Monday.

Another issue discussed in the meeting, he added, was the possibility of extending an agreement between the OPEC (Organization of the Petroleum Exporting Countries) members to reduce oil output by June 2018. The IEA said it is time to reexamine the region's energy security with the United States adding refined products to the country's strategic petroleum reserves alongside crude.