Oil holds gains as producers say market rebalancing

TOKYO: Oil prices came under pressure from a strong dollar, but kept most of their gains from the previous session as major producers meeting in Vienna said the market was well on its way towards rebalancing.

The Organi zat ion of the Petroleum Exporting Countries, Russia and several other producers have cut production by about 1.8 million barrels per day ( bpd) since the start of 2017, helping lift oil prices by about 15 per cent in the past three months.

Kuwaiti Oil Minister Essam al- Marzouq, who chaired Friday’s meeting of the Joint Mini sterial Monitor ing Committee, said output curbs were helping cut global crude inventories to their fiveyear average, OPEC’s stated target.

London Brent crude for November delivery was down 8 cents at US$ 56.78 a barrel by 0614 GMT, near the highest since March.

US crude for November delivery was down 15 cents at US$ 50.51, but not far off recent four-month highs.

The dollar index was up 0.2 per cent against a basket of currencies. The euro slipped after Germany’s election showed surging support for a far- right party that left Chancellor Angela Merkel scrambling to form a governing coalition.

Russia’s energy minister said no decision on extending output curbs beyond the end of March was expected before January, although other ministers suggested such a decision could be taken before the end of this year. — Reuters