Oil rises 1% as markets await OPEC's meeting

2018-12-05 21:23:32 GMT (Economies.com)
Oil rises 1% as markets await OPEC's meeting

Oil futures rose nearly one percent in American trade with US crude and Brent climbing off October 2017 lows, as the dollar index traded mostly flat, while the US market shuts down for the official holiday announced by President Donald Trump in honor of late President George H.W. Bush. 


As of 06:02 GMT, US crude futures due in January rose 0.81% to $53.68 a barrel, while Brent February futures rose 0.68% to $62.50 a barrel, as the dollar index inched up 0.03% to 96.99 away from two-week lows. 


Saudi oil minister Khalid Al Falih said his country doesn't aim for a specific price for oil but rather to achieve demand-supply balance in coordination with other producers. 


UAE oil minister and current President of OPEC Suhail Al Mazroui said OPEC aims to balance and stabilize prices, noting the importance of reaching consensus between all members of the organization, and asserting the need to cut market supplies. 


Saudi oil minister Khalid Al Falih said it's too early to say OPEC will cut output next year, adding to agreement has been reached on the size of such a potential cut. 


He added that Russia's position is the only hurdle to reach an agreement, with OPEC expected to delay a decision if Russia refused a large-scale production cut. 


Iran Sanctions 


Otherwise, as US sanctions went into effect on Iranian oil exports starting November 4, eight countries were granted waivers for 180 days, mainly China, India, South Korea, Japan, Italy, Greece, Taiwan, and Turkey, already the largest importers of Iranian oil. 


Prices hit 13-month lows recently on renewed concerns over a supply glut as global producers pump record amounts of crude while global demand weakens. 


Goldman Sachs expects the meeting to result in an agreement to cut output by 1.3 million bpd into 2019. 

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