Oil reverses higher as markets await results of OPEC's meeting with Russia

2018-12-07 15:15:11 GMT (Economies.com)
Oil reverses higher as markets await results of OPEC's meeting with Russia

Oil futures reversed higher in American trade after a dip in Europe as markets await the results of OPEC's ongoing meeting with Russia and other producers to come up with a deal to cut output next year. 


As of 13:25 GMT, US crude rose to $52.35 a barrel, while Brent advanced to $61.30 a barrel. 


US crude lost 1.9% yesterday, the second loss in three days, while Brent shed 2.1% after OPEC's earlier meeting ended without a deal yet to cut output. 


OPEC convened in Vienna on Thursday to decide on production policies, but the meeting ended with no deal as Russia opposed making considerable cuts.


The meeting was extended for another day to decide on Russia's involvement with a possible production cut deal. 


Russian energy minister Alexander Novak left Vienna for his country to discuss with President Vladimir Putin before returning to Vienna today to resume meeting with OPEC and declare the final decision for Russia. 


Analysts expect OPEC and other producers to cut production by 1.2 to 1.4 million bpd. 


The current leaks indicate OPEC is willing to cut output by 800 thousand bpd, but Russia's participation is yet not clear. 


Otherwise, the US Energy Information Administration reported a drop of 7.3 million bpd in US crude stocks last week, the first such drop since September 14. 


US output remained unchanged last week at 11.7 million bpd, already a record high. 

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